Western offers green products to Federal agencies
Federal agencies have many good reasons to use renewable resources to meet their energy demands, not the least of which is to comply with the Administration's environmental goals. That's why Western created a program to put those benefits within easy reach of agencies.
Under the Renewable Resources for Federal Agencies initiative, Western will acquire renewable energy for Federal agencies in its 15-state territory that commit to purchasing the green products. The news gets even better: agencies don't have to be Western firm power customers to participate in the program.
"Secretary of Energy Spencer Abraham asked Western to develop a program to provide additional opportunities for Federal agencies to purchase renewable resources," explained Technical Services Manager Mike Cowan. "It's a great way to introduce Western's Energy Services to agencies that may not have been aware of our resources and capabilities."
Flexible options make renewable energy more accessible
Western recognizes that every installation is unique, so flexibility is built into Renewable Resources for Federal Agencies. An agency may buy renewable energy in any quantity, and customers may choose from three renewable products.
Federal agencies that are not currently Western customers can buy renewable energy, but such arrangements will need to include transmission services as well. The costs to the customer will include renewable power generation, transmission and related services and program administration. Because renewable resources are not subject to fuel price fluctuations, customers can expect their renewable energy cost to remain fairly stable for the term of the contract.
Western can acquire renewable energy for existing customers either to replace or supplement firm hydropower energy deliveries. Customers pay the hydropower energy price, plus an additional fixed expense for the renewable energy costs. Billing for the supplemental product is simple, since the agency is already a Western customer, and there is no need for the customer to make arrangements for additional transmission.
The purchase must be allowed under the provisions
of the supplying project's marketing plans. Customers interested
in supplemental renewable energy should contact their regional
energy services representative for further details.
Green tags give customers renewable benefits regardless of location
Renewable energy certificates offer an innovative way for interested Federal agencies to buy renewable energy even if they are not interconnected to a producer. Green tags, as the certificates are known, split renewable energy into two components: electricity and environmental benefits.
Western buys the energy from the renewable supplier and delivers it to its transmission system, replacing energy generated by fossil fuels—and avoiding the emissions the conventional energy would have produced. The green tag represents the value of those avoided greenhouse gases. Customers purchase green tags from Western for the difference between the renewable resource's price and Western's avoided cost.
Green tags do not require any transmission arrangements on the customer's part. The cost of delivering the renewable energy to Western's transmission system will be included in the total negotiated price of the tags, which will be fixed with a periodic adjustment to assure that the agency receives the full benefits or costs of this service.
Another advantage of green tags is that they have no impact on the customer's existing power supply. The purchasing facility continues to buy power to meet its load from its current supplier without change.
Again, Federal agencies need not be Western customers to buy green tags. Existing Western customers may be able to combine payments for green tags with payment for Western's hydroelectric power.
Contacting Western the first step to increasing renewable use
Federal agencies interested in reducing their
reliance on fossil-fuel generated energy, stabilizing their
energy costs, creating local jobs and generating local tax revenue
should contact their regional
energy services representative. Western has a renewable
product and marketing program to meet the environmental and
economic needs of all types of Federal facilities.
Agencies will be asked to sign commitment letters with Western detailing the type of product desired, the quantity to be purchased and the desired price range. If a region collects sufficient orders for renewable resources, Western will issue a request for proposals from renewable providers. Following a review of the resulting bids and finding proposals with terms agreeable to interested Federal agencies, Western will help set up the necessary arrangements to purchase renewable energy.
By participating in Renewable Resources for Federal Agencies, facilities may also be eligible to join the Environmental Protection Agency's Green Power Partnership. The voluntary program aims to reduce the environmental impact of electricity generation by promoting renewable energy. Members can plug into the EPA's network of providers and other partners, technical information and public recognition.
"The point is, there are a lot of resources and options out there to help Federal facilities increase their use of renewable energy and reduce emissions," Cowan stated. "We hope they will use this program as a gateway to more sustainable practices."
