Colorado utility
offers locally produced green power
by
Kevon Storie
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Holy Cross CEO Kent Benham (center) visits the small hydro installation Tom Golec (l.) and Gerry Peters (r.) built on Ruedi Creek near Aspen, Colo. The 25 kW unit is one of two privately owned generators producing green power the co-op markets to consumers under its Local Renewable Energy Pool program.
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Members of Holy Cross Energy, the first rural electric co-operative in Colorado to offer its customers wind power, can now buy their green power "fresh" from local producers in the Roaring Fork Valley.
Under the Local Renewable Energy Pool program, Holy Cross began marketing blocks of green power generated by two locally sited, 25 kW small hydroelectric units to residential and commercial subscribers in the fall of 2002. Holy Cross pays the owners of the micro hydro systems about 6.5 cents per kWh—the market rate for renewable energy.
Other co-op members participate in the energy pool with net metered photovoltaic systems. More than a dozen roofs in the Holy Cross service area are capturing Colorado sunshine to provide electricity for their buildings. Any power the systems produce beyond the households' needs is credited back to the customer at market rate.
Community supports energy saving initiatives
"It's
not really a money-making proposition, but our customers don't
get involved in producing renewable energy to make a profit.
They do it out of commitment to the environment," asserted
the co-op's marketing expert David
Church.
That commitment is strong in the Roaring Fork Valley, where the economy is powered by tourism, ranching and farming. "People here understand that their livelihoods depend on a stable climate, so they are willing to spend a little more money to fight global warming," said Randy Udall, director of the Community Office for Resource Efficiency.
CORE is a non-profit
organization that works with local utilities and municipalities
to promote renewable energy and develop energy efficiency programs,
such as the city of Aspen's Renewable Energy Mitigation Program
highlighted in the February
2003 Energy Services Bulletin. Proceeds from REMP helped
Bob Golec and Gerry Peters build a water-powered generator on
Ruedi Creek. They received additional funding for the project
from a foundation supported by employees of Aspen
Skiing Company.
Utility works with customers to make small generators viable
Golec decided to build
the 25-kW generator two years ago after he successfully generated
energy for home use with a tiny spring-fed unit. Holy Cross
contracted with Golec, Peters and the Mountain Chalet at Snowmass
Village—which owns a generator on a municipal water system—to
buy the hydropower for nearly twice what the utility pays for
power from coal-fired plants.
The utility
sells the renewable energy in 75 kWh blocks for a monthly premium
of $2.50. This is slightly higher than its wind power premium
of $2.50 for a 100-kWh block. "Local generators don't
have the volume and capacity of industrial wind farms,"
Church explained, "but we need to maintain a similar
level of payback to encourage customer-providers."
Udall commended the utility
for its efforts, noting, "The projects wouldn't make
sense economically without the premium payout. Holy Cross is
bending over backward to make this work."
Interest
in building small hydro grows
Under the right conditions, small hydroelectric systems can work both economically and environmentally. The generators require no dams—just natural energy provided by fast-moving creeks—and can provide electricity for as little as one household up to several homes or small businesses. All the water used to spin turbines is returned to the same stream, making the systems non-consumptive.
Nevertheless, Holy Cross residential and commercial customers who have expressed interest in building units must address issues besides financing. A site must meet certain physical conditions to support a hydro unit. This is not as easy as people might think in a semi-arid climate like the Colorado Rockies. "Primarily, the property has to have a good water flow because we do not favor any dam or diversion facility," said Church.
It is also necessary for the property owner to secure the neighbors' consent, he adds. "The units don't have much affect on the flow, but people downstream need to be aware that it could, and accept that possibility."
Church is optimistic, however, that Holy Cross will be able to offer customers more locally grown energy in the near future, and that there will be a market for it. "We've promoted the Local Renewable Energy Pool in only two newsletters and we already have 12 subscribers," he observed.
A billing insert in February is expected to sell the remainder of the energy blocks. The utility used the same strategy to market the wind power option to its members, and the program launched with a waiting list of 100. About 5 percent of the utility's customer base subscribes to wind power—one of the highest enrollments in the country.
"We've marketed the renewable energy option in billing statements, new member packets and in every newsletter since 1998," said Church. "Every time I think the market is saturated, a customer calls up and says, 'I just heard that you offer wind power. You should be doing a lot more of that!' So we'll keep getting the word out."
