Colorado utility
offers locally produced green power
by
Kevon Storie
 |
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.
|
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."