GREENING EASTHAMPTON’S LOCAL ECONOMY
MIKE GORDON
CEO, JOULE ASSETS
JUNE 15, 2016
COMMUNITY CHOICE AGGREGATION (CCA)
Relocates authority to designate default energy supplier(s) from Albany to your local town or village
WHY CCA?“Swiss army knife” energy policy enables communities to:
• Fix energy rates • Procure existing large-scale renewable energy more competitively• Dictate the (contract) terms of energy purchasing• Achieve peak demand reductions• Finance local development (i.e. offshore wind, community solar) when
fossil fuel prices go up through “renewable bank”• Acquire consumption data for energy planning
CCA BY THE NUMBERS• Over 5 million electric customers nationwide enrolled in a CCA• New York becomes 6th state with active CCA programs• 107,000 currently served by Westchester Power, state’s first CCA• Estimated reduction of 300,000 tons CO2 (NYSERDA)
• Statewide rules established by PSC April 21, 2016
Fixed rate supply contracts:• ConEd : 32 months (ConEd Solutions)• NYSEG: 36 months (Constellation)
5.5-10.5% savings vs. 12-mo. avg. utility supply rate
Free opt-out at any time with no penalty
14 of 20 communities selected 100% Renewable (Green-e certified RECs) default
Contract provides for future renewable development and efficiency programs
REDUCING THE NEED FOR POWER PLANTSYOUR COMMUNITY, YOUR CHOICE
• 25% of our power costs are determined by what we consume in one hour of the year
• If we reduce our consumption in that one peak hour, our electricity supplier will have millions of dollars of extra “band-width” supply to sell next year
• Our contract ensures that our consumers get those millions of dollars when our supplier sells that band-width
To join, text “South Fork” to:
(646) 267 - 5370
The Peak Power Hour program tells you the night before and confirms the morning of: “Today at 4PM might be the day, let’s reduce power at home and join our neighbors for
a party…”
REDUCING THE NEED FOR POWER PLANTSWHEN WILL THAT HOUR BE AND WHAT DO WE DO?
LONG ISLAND ENERGY LANDSCAPE
TODAY• Largely unregulated monopoly• Tariffs and RFPs• Long-term contracts w/centralized
power plants• You can earn by intelligently
managing what you consume
TOMORROW (18 months?)• Competitive markets: you choose
your supplier• The utility earns more when you are
happier and more engaged• You earn and save more when you
intelligently manage what you use
WHAT CAN LONG ISLAND COMMUNITIES DO NOW? Take charge• Pass local law in advance of deregulated supply markets• Hire a demand response representative and pay residents who
agree to shed when called • Request aggregated and real time consumption data from PSEG,
to get paid, now• Your aggregated customer base can then back finance of offshore
wind, the moment the market opens up• Natural gas procurement?
SOUTH FORK’S PEAK DEMAND PROBLEM
2014 electricity demand (hourly)JAN DEC
Nearly 25% of your power plants exist to serve you for only 10 hours each year.
Peak Power Hour informs you when those hours are. You prove that you are the resource that can replace those power plants and the text service will tell you
when you are eligible to get paid for what you turn off in those ten hours
Text “South Fork” to (646) 267 - 5370
BUILDING RENEWABLE GENERATION AS A REGIONAL ECONOMY
Renewable Bank— 1. Finance a new, renewable power plant, 2. direct your supplier to buy from the plant you built and
3. to sell the excess power they previously purchased; 100% of profits from the sale support the new renewable plant you built
Text “South Fork” to (646) 267 - 5370
Peak Power Hour empowers the South Fork to: • take charge of your peak demand challenge, • Inform yourself on when the power market
becomes competitive, and • share in value of avoided costs to PSEG/LIPA
Thank you!
EXTRA SLIDES
JOULE COMMUNITY ENERGY MODELRecurring revenue for locally engaged teams Unifying consumer and environmental groups• “Renewable Bank” – supplier sells excess power when FF markets move up• “energy reduction products”- pay residents for managing consumption at peak
through control of smart thermostats
Educating consumers• Openly address risks• How can consumers gain and add value to energy markets?
OPT OUT RATES BY COMMUNITYOVERALL RATE: 6.3% (NAT’L AVG: 10%)
Somers
North Salem
Lewisboro
Bedford
16.7%
11.9%
10.6%
13.4%
NYSEG Territory
White PlainsTarrytownRye Brook
PleasantvillePelham
Ossining VillageMt Kisco
Mamaroneck VillageLarchmont
IrvingtonHastings
Ossining TownNew Castle
Mamaroneck TownGreenburgh
BedfordNew Rochelle
5.5%5.6%
4.6%4.0%
3.0%5.3%
4.6%4.3%
3.4%5.1%
4.4%4.2%
4.1%5.7%
4.2%4.2%
5.6%
ConEd Territory
Bedford 5991
Greenburgh 12901
Hastings 2547
Irvington 1986Larchmont 1519 Lewis
boro 4313
Mamaroneck 4124
Mamaroneck 6417
Mount Kisco 3275
New Rochelle 20943
Newcastle 5014
North Salem 1976
Ossining 1689
Ossining 6608
Pelham 582
Pleas-antville
2405
Rye Brook 2834
Somers 7475
Tarrytown 4018
White Plains 17066
Utility Supply Customers by Community