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Orcas Power & Light Cooperative

Ambassadors Legislative Kick-off MeetingsOctober 7 & 8, 2010

Washington’sElectric Cooperatives

Our Energy, Our Future:A Dialogue with America

Mobilizing co-op consumers to ask their elected representatives tough questions about the future of energy.

Washington’sElectric Cooperatives

Join the Campaign: www.ourenergy.coop

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What are we talking about?

• Cap and Trade/Carbon Tax

• Conservation/Energy Efficiency

• Renewable Energy Standard/RPS

• Net Metering

• Feed-in Tariffs/Standard Offer Contracts

• On-bill Financing

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Cap and Trade/Carbon Tax

• Not the same but have same goal:– Placing a cost on carbon dioxide (CO2)

emissions

• Cap and Trade– Establishes limits on CO2 emissions– Permits issued for the allowed emissions

(allowances)– Allowances can be “traded” if surplus or

needed

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Cap and Trade/Carbon Tax

• Cap and Trade (continued)– Current proposals have serious flaws in the

proposed “trading” schemes

• Carbon Tax– More transparent– More effective in influencing behavior– Determining appropriate level is difficult– Politically it is DOA

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Conservation/Energy Efficiency

• Not the same thing– Conservation – Not using or reduced usage– Energy Efficiency – Smarter usage

• Washington State– Conservation requirements (RPS)– EE requirements on targeted items

• Federal– Proposals for energy efficiency requirements

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Renewable Energy Standard/ Renewable Portfolio Standard

• Enacted in over half of the states

• Federal proposals but no law yet

• Inconsistencies are rampant– Different definitions of “renewable”– Different levels of requirements– Different eligibility requirements

• Requirements exceed availability

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Net Metering

• Accounting for electricity generated on the retail customer’s side of the meter

• Retail customer gets credit for excess electricity– Excess electricity is “banked” for future bill

credit

• Payments are tricky because of federal jurisdiction over wholesale power purchases

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Feed-in Tariffs/Standard Offer Contracts

• No federal – only states enactment

• Jurisdictional issues – wholesale pricing

• Legislates “winners” and “losers” among production technologies

• Puts “business risk” on retail customers without any share of potential profits

• No regulatory oversight – retail customers at the mercy of generators

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On-bill Financing

• Provides funds for up-front investments in conservation and energy efficiency

• Great idea if done correctly– Restricted to residential and small commercial– Identified and quantified savings for retail

customer– Specific “pay-back” periods– Appropriate risk assignments

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That’s what are we talking about!

• Cap and Trade/Carbon Tax

• Conservation/Energy Efficiency

• Renewable Energy Standard/RPS

• Net Metering

• Feed-in Tariffs/Standard Offer Contracts

• On-Bill Financing

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Information

• Orcas Power & Light Cooperative– www.opalco.com

• Washington Rural Electric Cooperative Association (WRECA)– www.wreca.coop

• National Rural Electric Cooperative Association (NRECA)– www.nreca.coop– www.ourenergy.coop

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PO Box 7219

Olympia, WA 98507

360.357.6048