# Presentation: 200110

## Greening Supply

**Supply Side Options for Local Government**
_**November 21, 2002**_
**Ann Elsen**
**Energy Planner**

- Montgomery County Department of Environmental Protection

**Notes:**
Fifth State and Local Climate Change Partners’ Conference
November 20-22, 2002
Annapolis, Maryland

Contact Information:

Ann Elsen
Energy Planner
Montgomery County Department of Environmental Protection
255 Rockville Pike, Suite 120
Rockville, MD  20850
240-777-7754
Fax 777-7752
elsen@askDEP.com
Web Site: askDEP.com

## Supply and Demand

- Montgomery County Department of Environmental Protection

## Sources of Greenhouse Gas EmissionsNationwide

- Montgomery County Department of Environmental Protection

## Local Sources of Emissions

## Aggregate Demand

## Local Government Options

- Direct Participation in Deregulation (or regulatory) process
- Municipal Aggregation
- Green Power Purchasing
- On-site Generation
- Consumer Education

- Montgomery County Department of Environmental Protection

## Before Deregulation

- Montgomery County Department of Environmental Protection

## Electricity Deregulation

****

****

****

- Transmission

-       Distribution
-    (Electric Company)

- Generation
-  (Supplier)

-       You
-    (End User)

**Notes:**
In July of 2000, the electric utility industry in Maryland was opened for competition.  This was preceded by a long period of legislative activity which was closely monitored by Montgomery County. The deregulation of the electric utility industry unbundles, or separates, the different pieces of the electricity product from each other, and gives customers the opportunity to shop for their electric power generation.  Previously electric power generation, transmission and distribution had been purchased as a single unit.  

Generation is the creation of electricity through the burning of fuels or the use other energy sources. Generation usually happens at a power plant. 
Transmission is the process of transmitting, or moving, the electricity from the power plant to the local distribution facility, sometimes over long distances. 
Distribution is the movement of electricity from a local center, or substation, to your home or business. 

## Evolution of Electricity Industry

**Notes:**
Shift from Investor Owned “regulated” utilities to competitive market

Concurrent evolution of industry
Information Age
Electricity dependent economy
Distributed generation vs. Central Power Plants
New Technologies

With or without deregulation:

Current power market doesn’t fit digital age.
Increased need for reliability.
Aging infrastructure carries power from large centralized generation plants.
Increased complexity of transmission and distribution systems.
Shift to distributed generation.

Graphic Courtesy of George Hay, Carl Weinberg &PG&E 

## Slide 10

- Montgomery County Department of Environmental Protection

## Green Supply Requires

- Renewable Portfolio Standard
- System Benefits Fund
- Access to the Grid – Interconnection
- Environmental Disclosure
- Municipal Aggregation
- Consumer Education

- Montgomery County Department of Environmental Protection

## Renewable Portfolio

- Montgomery County Department of Environmental Protection

## System Benefits Fund

- Few cents on customer’s bill
- Provides $ millions for investments in energy efficiency and renewable energy
- Restores DSM to deregulated markets

- Montgomery County Department of Environmental Protection

## Renewable Generation

-     Montgomery County’s first zero net emissions home

- Montgomery College

- Montgomery County Department of Environmental Protection

## More Photovoltaics

-     School Crossing

- World’s First Solar Powered Gas Station

- Montgomery County Department of Environmental Protection

## Solar Schools

-     Public/Private partnership with Mirant Mid-Atlantic:

- John Poole Middle School

- Poolesville High School

- Smith Center

- Montgomery County Department of Environmental Protection

## Interconnection

## Environmental Disclosure

- _Product A_                              _Product B_

- Montgomery County Department of Environmental Protection

## Aggregation

- Big dogs eat first.

- Montgomery County Department of Environmental Protection

**Notes:**
Municipal Aggregation:
Market power for residential customers
Enables them to buy power as a group. 
Group can specify environmental characteristics of electricity product.
Only works if it’s an opt-out system.

Municipal Aggregation is specifically prohibited by Customer Choice Act.
Aggregation can be conducted by a private or non-profit aggregator.
Legislative efforts to lift prohibition on municipal aggregation have not been successful.
SOS price caps due to expire soon.

## Consumer Education

- Montgomery County Department of Environmental Protection

## Green Power Purchasing

- _Montgomery County Example:_
- Joint Purchase – savings of $ 3.8 million
- First Round – no price premium
- Defined our own Renewable Portfolio Standard – very broad definition
- Percentage too low to impact supplier’s behavior – 3%

- Montgomery County Department of Environmental Protection

## New Wind Energy

- _Montgomery County Example (cont.):_
- Next round of procurement – greater focus on “green”
- Must provide local air quality benefits
- Wind just became available on a large scale
- Cost still an issue – price premium
- 5% ~ $400 K+

- Montgomery County Department of Environmental Protection

## Emissions Reductions

## Backbone Mountain Wind

- Montgomery County Department of Environmental Protection

## Coal - Mountain Top Removal

- Montgomery County Department of Environmental Protection

## It’s not easy being green.

- Montgomery County Department of Environmental Protection

**Notes:**
Renewable Energy Requires:

Connection to the “grid”
Transmission capability
Removal of regulatory restrictions
Access for small generators
Net Metering
Market Development
Educated Consumers
Adequate and accurate information
Incentives and requirements:  RPS = Renewable Portfolio Standard

## For More Information

- askDEP.com
- - or contact -
**Ann Elsen**
- Energy Planner
- Department of Environmental Protection
- 240-777-7754

- Montgomery County Department of Environmental Protection