×

PUC approves program to allow customers to buy renewable energy credits

NEW ULM — New Ulm energy customers will have a new option for supporting renewable energy.

The New Ulm Public Utilities Commission (PUC) approved a voluntary program called Clean Energy Solutions which will be available to customers, allowing them to purchase renewable energy credits.

Currently, New Ulm Public Utilities supplies customers with 25% renewable energy. Renewable energy is received from the Wessington Springs Wind Farm in South Dakota.

The Clean Energy Solution allows customers to support renewable energy without purchasing the physical equipment needed to produce renewable energy. Instead, customers would purchase a renewable energy credit (REC). This credit is defined as a tradable certificate that supports renewable energy development and reduces the overall carbon footprint.

Each megawatt (MW) of renewable energy is assigned a unique number to make sure it is tracked and counted once One certificate, called Renewable Energy Credits (REC) represents one MW of renewable energy added to the electric grid. Clear Energy Solutions gives customers the opportunity to support and supply renewable energy to their homes or business without the upfront cost of installing solar or other distributed energy resources.

NUPU Energy Service Representative Derek Nelson said this program will be available to all customers whether residential, commercial or industrial. Customers would still be paying for electrical, with this program added to the bill. The additional cost would be a line item on the monthly bill. The cost would be dependent on what percentage of the use was coming from renewables.

Nelson said all customers already receive 25% of energy from renewables; those participating in the program have the option of increasing the usage to 50%, 75%, or 100%. For residential customers, the additional line item on the bill would be $1 for 50%; $2 for 75% and $3 for 100%. This monthly cost is fixed and is not dependent on energy usage. The maximum a residential customer would pay for 100% is $36 a year.

For businesses, the additional cost is $0.001 per kWh based on the percentage selected.

As a hypothetical, commissioner Sean Fingland ask what would happen if every customer signed up for the 50% renewable option.

“Is that now the expectation Heartland will provide 50% of our power from renewable?” he asked.

Nelson said, in theory, Heartland could theoretically supply that extra energy if enough New Ulm customers opted into the program. However, if for some reason Heartland was unable to supply that renewable energy, the energy could be purchased elsewhere on the market using the tradable Renewable Energy Credits (REC).

Fingland asked that if the entire community signed up for 100% of renewable energy credits, would all the city’s energy come from renewable?

Utility Director Kris Manderfeld clarified purchasing credits would not change the source of New Ulm’s current energy use. There is no way to track how each electron of energy was produced; the RECs encourage the creation of new renewable energy sources. Manderfeld said there would be enough REC available for purchase to offset if the community chose 100% renewable.

The idea behind the Clean Energy Solution program is to help support renewable energy options. The more support for the program, the more money is available to fund additional renewable energy sources.

“It’s an affordable way for customers who want renewable energy,” Manderfeld said. “They want to promote renewable energy. When you are looking at $3 a month to be 100% renewable, that’s pretty affordable.”

Minnesota is looking to be 100% carbon-free by 2040. Manderfeld said this is how many utilities will reach that goal because not every community can build solar, wind or hydropower installations.

“You can’t build enough renewable in Minnesota to supply everyone with 100% energy,” Manderfeld said. However, buying the credits spurs creation of additional renewable energy.

Commissioner Mary Ellen Schanus made the motion to approve the program with a second from Commissioner Kim Williams. The program is available to all customers effective June 1, 2023.

Newsletter

Today's breaking news and more in your inbox

I'm interested in (please check all that apply)
Are you a paying subscriber to the newspaper?
   

Starting at $4.38/week.

Subscribe Today