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BACKGROUND

STANDARDS FOR GREEN POWER SET TO DEBUT


By Michael Vickerman

This is a reprint of an article that ran in the Winter Issue V.7 No. 3 of the Wisconsin Renewable Quarterly. It gives the background of RENEW's role in renewable power product certification in Wisconsin.

Through a collaborative effort organized by RENEW, Wisconsin utilities may become among the first in the nation to seek national third-party certification for their renewable power products.

The purpose of third-party certification is to build consumer confidence in renewable power products, which are becoming increasingly available in both regulated and restructured markets. With nearly 17,000 residential and business customers already purchasing green power here, Wisconsin clearly has an attractive market. About 70% of the state's electricity customers have access to a utility-offered green power product or renewable donation program, and that figure is certain to rise. Yet while the Public Service Commission regulates the prices utilities charge for green power products, there are no regulatory standards in place for determining whether these products actually deliver the environmental benefits claimed in the marketing materials.

Enter the Center for Resource Solutions (CRS), a San Francisco-based nonprofit organization with an interest in promoting a vibrant marketplace for renewable electricity. Shortly before California and Pennsylvania opened their retail electric markets to competition, CRS launched Green-e, a voluntary certification service for renewable-based electricity products offered in restructured markets. Renewable power providers that meet stringent standards for customer and environmental protection, as verified by CRS in annual audits, receive the Green-e seal of certification.

In two years Green-e has become a nationally recognized symbol of superior performance in the renewable electricity marketplace. That success inspired CRS to begin developing a separate certification process for utility green power offerings, which was formally launched last November.

Underlying CRS's utility accreditation program is a commitment to engage local environmental groups, government agencies and interested utilities in the development of certification criteria. Under this program, the accreditation process begins with the formation of a stakeholder group to recommend standards for certifying utility programs in its state or region. These standards cover a range of program elements, such as resource content, product pricing, marketing and disclosure. Only when the recommended criteria has cleared both the stakeholder group and the national governing body can a utility program be nominated for certification.

Naturally, Wisconsin's favorable experiences with green power encouraged CRS to search for a local partner that could convene a stakeholder group and start the ball rolling. It didn't CRS very long to learn of RENEW's extensive involvement in shaping utility green power programs, including the negotiation of an agreement with Wisconsin Electric Power over its Energy for Tomorrow program, which is still in effect. Under the agreement reached two years ago, Wisconsin Electric agreed to supply its Energy for Tomorrow program with renewable electricity generated principally from new sources in Wisconsin. In exchange, RENEW and Wisconsin's Environmental Decade agreed to publicly support the program and provide marketing assistance to the utility.

Looking back, it is clear that our agreement with Wisconsin Electric gave environmental organizations a permanent seat at the green pricing table. Once there, we have managed to hash out issues with utilities in a cooperative and nonconfrontational manner. In many ways a dress rehearsal for the CRS initiative underway, the settlement experience provided RENEW with the credentials to assume a leadership role in crafting rules that all Wisconsin participants can accept as fair.

Under RENEW's aegis, the Wisconsin stakeholder group, which has been meeting since December, is very close to submitting its recommendations to CRS's national accreditation board. Our aim is to have the criteria in place by April 15 in time for Earth Day certification announcements.

In terms of resource content, all of the green power subscription programs offered in Wisconsin would meet the minimum requirements for certification, which attests to their high quality. It does not necessarily follow, however, that all green power providers will pursue certification, not does it mean that those who decline certification have substandard programs. While RENEW would encourage all Wisconsin providers to seek certification, utility participation is strictly voluntary. For utilities, that decision will ultimately come down to how well certification would complement their marketing requirements, which can vary significantly from one customer base to another.

PRESS RELEASE

GREEN PRICING ACCREDITATION ROLL-OUT PRESS CONFERENCE

Tues. April 25, 2000 From: Kirk Brown, Resource-Solutions


On Wednesday, April 19, in front of a full room at the National Press Club, the first three utility programs to be recognized as Accredited by the National Green Pricing Accreditation Initiative were announced -- Wisconsin Electric's energy for tomorrow program, Madison Gas and Electric's MGE Wind Energy, and TVA's Green Power Switch. Representatives from two of the programs, Wisconsin Electric and TVA, received the recognition on a stage they shared with Jan Hamrin, CRS Executive Director, Randy Swisher, Executive Director of the American Wind Energy Association, Michael Vickerman, Executive Director of Renew Wisconsin, and Steve Smith, Executive Director of the Southern Alliance for Clean Energy.

The collection of speakers demonstrated the good support well-crafted green pricing programs can receive from local environmental and consumer protection stakeholders. The day's message also underscored that these programs really are delivering for America's renewable energy industry. The press audience at the National Press Club got that message, and after the announcement engaged the speakers in a dialogue that ranged from the cost of renewables to the future promise for green power.

Too many people worked too hard too long to fully recognize everybody who deserves mentioning for their role in helping to ensure the successful launch of this program. However, we would like to give special notice to the respective stakeholder groups who worked through the hard issues and reached consensus in support of strong standards for Accreditation in their respective regions. And the leaders of those two stakeholder processes -- Michael Vickerman, Renew Wisconsin, and Steve Smith, the Southern Alliance for Clean Energy -- probably deserve to be decorated for their long efforts in championing solid approaches to green pricing in two of the most renewables poor regions of the country.

The three utilities who led the country in seeking and achieving Accreditation for their programs now enjoy their status as market leaders in addition to their new responsibilities to the Accreditation program. Over the next year, the Accredited programs will be monitored by the Accreditation Board to ensure that effective and truthful marketing of the programs happens, that environmental claims are supported, and that by the end of the year independent analysis can confirm that customers participating in the Accredited programs receive the renewables they were promised. The Board will look for the strong partnership of utilities offering Accredited programs as it moves through these tasks.

Good work to all. We'll report back as more news comes in -- efforts are already underway to build off the success of the first two regions participating in the Accreditation Initiative. New work in new regions is beginning, and additional utilities from the Wisconsin area may also seek recognition for programs that can garner sufficient support from local stakeholders to be nominated for Accreditation.

Board members -- we'll look forward to seeing you in June for the next Board meeting. We will finalize details with each of you for that meeting shortly.

Best regards,

Kirk

Kirk Brown, Assistant Director

Center for Resource Solutions


Other press releases from CRS

Information on CRS programs is available at www.resource-solutions.org.

Curious about Green-e and green power? Check out www.green-e.org.

EPA Green Power Calculator  Estimate the environmental benefits of buying Green Power in your state
Electricity Label Generator shows how your electricity (by state) is produced and how much polution is created in the process (Environmental Defense Fund)
Purpose of third party certification
Center for Resource Solutions (CRS) --

Green-e

The accreditation process
How RENEW got a seat at the green pricing table