NorthWestern Energy’s E+ Green ProgramBackground for the NorthWestern Energy Green Power Stakeholder Advisory Group

Background on E+ Green

• What is a REC?• Why is E+ Green offered?• Where do the RECs for E+ Green

come from?• About E+ Green• Current Alternatives to E+ Green• What are other utilities offering

for green product programs?

• What’s a REC?

o Renewable Energy Certificate or “REC” A tradable, legal mechanism

o Represents the environmental benefits of one Megawatt-hour (MWH) of electricity generated from a renewable energy resource

REC background

• What’s a REC?

o May be sold with the electricity generated (bundled)

o When sold separate the electricity (unbundled) the buyer of the REC can claim renewable energy benefits and the electricity is sold as “null” power—can’t be claimed as renewable

REC background

• What’s a REC?

o Tracked, Retired, Meets age/certification standards if for green power program

o REC for RPS may meet different standards in different states or markets

REC background

• MT Legislature mandates Green Product offering

• Buy RECs from Bonneville Environmental Foundation (BEF) to cover “blocks” of E+ Green

E+ Green

BEF

• RECs from BEF are Green-e Certified• NorthWestern’s E+ Green is not currently Green-e certified

• Green-e is an independent program providing certification and verification for renewable electricity and renewable energy certificates (RECs)

• Green-e recognized for LEED and other sustainability organizations

• BEF is a non-profit organization based in Portland that buys and sells RECs

• Wind, Solar, Biogas, Landfill Gas, Geothermal

• NorthWestern specifies from the Northwest, MT or WY

• MT RECs very limited and expensive

• RECs supporting E+ Green

• 2018 Biogas from a Dairy Farm in ID

• 2019 Wind from WY

• Available to all retail electric customers• Mostly residential customers• Option for customer without installing system at their

home or business• No contract—Customer participates as they choose

• Rate set by EGPS-1 Tariff $2 per 100kWh Block

• Most residential customers buy 1 block• Largest customer over the years purchased

1,000 blocks/Mo (No longer enrolled)• December 2019, 295 residential and 17

commercial• 2019 Average of 1499 blocks/month

E+ Green

• Neutral to utility rate base/shareholdero Net revenue/deficit assigned to Electric

Renewable Universal System Benefits—(2018):

• Gross Revenue = $33,312• BEF Expense/1668 RECs = -$11,676• NET REVENUE = $20,826

(credit to USB)

E+ Green

• Operates as Optional Program

o Limited Advertising – no paid advertising in 2018 or 2019

o Web Banner, social media, bill insert, public radio, spot media placement

E+ Green

NorthWestern Promotion

• Customers sign up online• Can also sign up through mail or

by phone

• Shows how much electricity is already clean

• Information to help customers decide how many blocks to buy

• Website landing page: o Quick URLo Text about Portfolio

and E+ Greeno Calculator for customer

to determine quantity and see cost

o Auto calculate customer charge on sign-up form

NorthWestern Promotion

www.NorthWesternEnergy.com/GreenPower

Current Alternatives to

E+ Green

Current Alternatives to E+ Green

• Buy RECs directly from REC retailers such as BEF – many Green-e certified options https://www.green-e.org/certified-resources

• RECs and utility bill repackaging option with freebies

What are other utilities offering

for green product programs?

Other Utility Green Product Program Attributes

• Lower price for REC• Green-e Certification of program in support of customer sustainability

initiatives• Local resources—in state • Marketing partnerships with commercial customers• Rate to match usage on a monthly

basis rather than fixed block rate