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Fall/Winter 2007 Newsletter

In this issue:

REPS and NCGP – Working together to build a brighter future

Anyone keeping up with energy policy around the state has doubtless heard of a new mandate referred to as the Renewable Energy and Energy Efficiency Portfolio Standard (REPS). This legislation, which began its life as N.C. Senate Bill 3 – 2007, was recently signed into law and will have far-reaching impacts on the future of energy generation in this state.

Portfolio standards are mandates that require a percentage of an electric utility’s overall or new generating capacity to be derived from renewable resources.

North Carolina’s portfolio standard is currently the 5th largest in terms of the total generation output required.

The REPS requires that 12.5% of the total generation of all investor-owned utilities statewide come from renewable resources by 2021. Investor-owned utilities include Duke Energy, Progress Energy and Dominion North Carolina Power. Of that 12.5% required, up to 25% can be derived through utility-initiated energy efficiency measures by 2018. Up to 40% can be achieved from energy efficiency by 2021. All other electric service providers in the state are required to meet a 10% requirement by 2018.

Eligible technologies for the REPS include all the types of resources used by the NC GreenPower program, but cannot include actual generation paid for by NC GreenPower contributions. Additional resources allowed by the REPS include solar thermal and combined heat and power applications. Most generation must come from new renewable energy installations, however some allowance is made for existing hydroelectric projects across the state.

One aspect of the REPS that differs significantly from the philosophy of NC GreenPower is the allowance of out of state renewable energy certificates (RECs) that can make up as much as 25% of the overall mandate requirement. RECs are purchasable credits that represent the generation of renewable energy somewhere in the country. There is no guarantee that the generation will be located in or around North Carolina and as such, no promise of any benefit to the environment or economy of the state.

The requirements of the REPS will mean that significantly more generating capacity will have to be brought online over the next decade. And new generation may result in additional costs to electric customers. Utilities are allowed to recover some of the cost of new renewable energy facilities through fees billed to their customers. These costs will be spread evenly among both residential and commercial customers.

So how does the REPS relate to NC GreenPower? How will NC GreenPower’s statewide voluntary effort be affected by a portfolio mandate? NC GreenPower applauds any new initiative to increase renewable energy generation across the state. And the REPS along with the continued growth of NC GreenPower’s voluntary program will help to make a significant difference for North Carolina’s energy and environment.

NC GreenPower remains the only way to voluntarily support renewable energy generated in North Carolina. Individuals and businesses can contribute at any level they feel comfortable. That can be very important when trying to offset all or a portion of your total energy usage. Additionally, since NC GreenPower is a non-profit organization, all contributions are 100% tax-deductible.

NC GreenPower offers essential support to small and medium-sized renewable energy projects. Solar, wind and methane gas are resources that play a critical role in the evolution of green power as an energy source in our state. Supporting their continued growth is essential to the overall success of this industry.

One other important consideration is that NC GreenPower gives you the opportunity to do something now. Much of the energy generated as a result of the mandate will not come online for as many as ten years or more. The need for cleaner energy and the need to improve the quality of our environment is an issue now. By contributing to NC GreenPower, you are effecting positive change today.

North Carolina’s REPS will be an important step toward a cleaner energy future. It builds upon the successes that NC GreenPower has already achieved. Together, these efforts will change the face of energy generation in our state now and for years to come.