College Station Utilities advertised on the 10pm news (kbtx ain't cheap) last night .... why the hell are they spending so much on friggin' advertising? Instead of giving our tax dollars to kbtx REDUCE OUR RATES!!!
quote:
. High temps outside mean that bill will go up since you are trying to cool house down on inside. not rocket science people
quote:
Over the past number of years, there have been customers of College Station who expressed an interest in obtaining renewable wind energy. In order to meet the wishes of customers and not harm overall rates, a minimum of wind capacity was contracted out of the South Trent Wind Farm in 2009. This contracted wind capacity was expected to supply between 4 to 5 percent of the overall energy needed for College Station. In essence, this amount of renewable energy brought College Station into what is expected of Retail Electric Providers (REPs) in the deregulated areas of Texas. The Public Utility Commission requires REPs to include at least 5% of renewable in their overall energy sales. Even though College Station is not forced to provide renewable power to customers, it is only a matter of time before municipal utilities will be forced to follow suit - and the cost only increases each year.
The wind energy purchased by College Station was expected to have a higher price associated with it because of transmission costs to get it out of West Texas and into College Station. The total extra cost for this wind energy was expected to add just under 0.1 cents per kwh in 2009 to the overall retail rate if no premiums were brought in at all. In other words, the regular residential retail rate would be 10.6 cents per kwh instead of 10.5 cents per kwh with no premiums added. The Wind Watts program was developed to offer customers the opportunity, if they chose, to obtain certified wind power at the 100%, 50% and 10% levels. The premiums charged to customers of Wind Watts would recover the extra transmission charges, scheduling charges and the cost of retiring the associated Renewable Energy Credits (RECs) that are required for certified renewable energy for the energy supplied to these customers. These premiums would lessen as transmission was built in West Texas and as regular carbon-based energy costs increased with the real possibility that wind power would actually be less than carbon-based energy in the future.
In reviewing costs associated with obtaining wind power during 2009, College Station has already seen a lessening of transmission costs. In addition, the wind premium has already been reduced effective October 1st because of increased costs associated with carbon-based power. It is expected that this premium will disappear completely within another 2-3 years as additional transmission is constructed in West Texas to relieve all transmission congestion. It is at this point that wind energy will be at less cost than carbon-based energy. College Station has signed a 20 year contract for this wind energy and the lower cost will greatly benefit all College Station customers over the remaining life of the wind contract. In fact, College Station's initial wind contract called for an increase in the amount of wind from South Trent to triple beginning in 2015. This will benefit customers even more in that more lower cost wind energy will be integrated into the overall power portfolio to all customers.
The electric utility industry is one that requires long-range planning in many aspects. Power supply planning and contracting is just one of those areas. College Station could not have contracted for anything less than the 5% we obtained in our initial wind contract. We were fully aware that a very slight premium would be required of customers for the early years of the contract with that premium being reduced by those participating in Wind Watts. However, long range benefits of this very favorable wind energy contract was the best long term strategy for the utility and one that will prove to save customers money in the long run. College Station had an opportunity to obtain wind energy through it's power supplier at a very favorable rate - we took advantage of this opportunity knowing that transmission costs would lessen in the future. This has occurred just as we hoped and College Station is in a very good position to reduce it's overall power costs due to this favorable wind energy contract.
This entire issue is a very difficult one to explain in an email so I invite you to give me a call sometime to further discuss anything needing further explanation.
quote:
I had a question that came up during your session on September 24th. There was discussion pertaining to the future maintenance of newly planted trees at the city corridors, and how that maintenance might be funded. Mr. Brown recommended revenues from the Wind Watts program be used in the future, or at least considered, to fund the maintenance.
My question is: if the Wind Watts program is currently not meeting goal, how would it be able to sustain another program? Are all of the monies collected through the program discretionary and may be used as such?
quote:
A small portion of the revenues from the sale of wind energy (Wind Watts) has been designated in the budget to be used for additional trees in public places in College Station. During the first 9 months of the wind energy program, subscription to Wind Watts has been limited to residential electric customers in College Station. At this point we have approximately 700 residential customers exercising the option to subscribe to wind energy. The portion of this revenue being set aside for trees amounts to approximately $8,000 to $10,000 at this time. This would be sufficient to cover the cost of the O&M for the additional trees that the City Council discussed last week. The point that I was trying to make to the Council was if no other funds were available in the Parks and Recreation budget to cover any additional expense for maintaining these trees, it could be covered by the Wind Watts revenue designated for trees. I envision that as a last resort.
This fall staff from our Electric Utility will begin engaging our commercial customers regarding their interest in subscribing to the Wind Watts program, now that we are sure most of the residential customers that are interested have signed up. We believe the opportunity to purchase wind power will be appealing to some commercial establishments whose corporate missions embrace sustainability programs. Staff anticipates much more, if not all, of the wind watts program will be purchased through this effort.
And finally to answer your last question, when the Wind Watts program is fully purchased by our customers, both residential and commercial, it is projected that the portion of those revenues being allocated for trees could generate up to $200,000 annually. Obviously we have a ways to go before that level of revenue is realized, but out Electric Utility staff believes that it is doable.
Please let us know if you have any additional questions.
quote:
Even though College Station is not forced to provide renewable power to customers, it is only a matter of time before municipal utilities will be forced to follow suit - and the cost only increases each year.