Paying A Price: Wholesalers Face Defections If They Move Too Slowly On Renewables

By Frank Andorka, Senior Correspondent

One Colorado co-op has set the stage to defect from one wholesaler because they don’t believe it’s moving fast enough to incorporate renewables into its portfolio – and the long-term implications are potentially startling.

As Western Energy News reports:

The Delta-Montrose Electric Association will vote in October on rule changes that would allow another power supplier to help finance its exit from a contract with Tri-State Generation and Transmission.

The association is among Tri-State’s largest customers, and its defection could heighten the risk of a mass exodus as others are forced to cover a larger share of costs for operating the wholesaler’s infrastructure, including its coal-fired power plants.

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The problem, at least according to Delta’s CEO, is the arbitrary cap Tri-States puts on local generation. That significantly limits the amount of renewable energy the co-op can have in its own portfolio. From Western Energy News:

Several co-ops have been stymied by Tri-State’s 5 percent cap on local generation, and Tri-State and Delta-Montrose continue to wait on a rehearing from the Federal Energy Regulatory Commission on the matter.

“We’ve been stifled from our ability to have flexibility to develop those resources and make them economical for our membership under the confines of our current contract,” [Delta CEO Jansen] Bronec said.

While Delta’s defection would have an immediate impact on Tri-State, the decision to move away from coal-generated electricity could have implications far beyond Colorado’s borders. It should send the message to wholesalers like Tri-State that arbitrarily clinging to outdated fossil-fuel generation is a way to lose members at an alarming rate. As prices continue to drop for solar and wind production, co-ops are not going to sit idly by and pay higher prices just because the wholesaler doesn’t want to change.

The Solar Revolution is happening, and smaller entities like Delta are starting to catch on. Once they realize the power is in their hands, look for more wholesalers to bend to the will of their members – and look for more renewable energy to come online as they do so.

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Colorado co-op vote sets table for defection from coal power wholesaler

New Colorado Law Encourages Energy Storage

By Frank Andorka, Senior Correspondent

What Happened: Colorado Governor John Hickenlooper signed into law Senate Bill (SB) 9, which explicitly provides the state’s citizens the right to install energy storage.

It also calls on utilities to streamline the interconnection processes for adding storage to existing net-metered systems.
It instructs the Colorado Public Utilities Commission (CPUC) to create a regulatory framework surrounding such installations.
Under the new legislation, Colorado utilities can’t require the installation of new meters to monitor energy storage.
The law will go into effect 90 days after the legislature adjourns, which is expected to be on or about August 8.

SolarWakeup’s View: Colorado now joins four other states in their decisions to increase support for energy storage.

As might be expected, Colorado Governor John Hickenlooper’s decision to sign SB 9 into law won widespread praise from the Solar Energy Industries Association as well as Colorado SEIA.

“This new law cements Colorado’s status as one of our nation’s renewable energy leaders,” said Sean Gallagher, SEIA’s Vice President of State Affairs. “Pairing energy storage with solar will allow consumers to have the cleanest, most reliable and most affordable electricity. The solar industry thanks Governor Hickenlooper and the Legislature for continuing to support the state’s solar market by taking this important step on storage.”

“Energy storage paired with solar energy gives consumers and businesses a way to be truly energy independent, and we commend our state’s leaders for declaring that citizens have a right to use this exciting technology,” said Rebecca Cantwell, COSEIA’s Executive Director. “We believe that this new law will spark more interest in going solar and will pave the way towards adding storage to many projects.”

The most interesting implication of this legislation, however, is the fact that the ability to install energy storage is now a legal right, something only a handful of other states have done to date. While many states are exploring ways to increase the amount of energy storage their states can install, there’s something particularly poignant about making energy storage installation a right.

I join SEIA and COSEIA in saluting Governor Hickelooper – it’s a nice-time Friday story that’s a great way to start off the weekend.

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Clean Energy Credit Union Will Back Solar Projects

By Frank Andorka, Senior Correspondent

What Happened: Yann Brandt sat down with Blake Jones and Terri Mickelsen, the driving forces behind the Colorado-based Clean Energy Credit Union (CECU), which they expect will:

provide loans to people who want to invest in products like solar installations, electric vehicles, energy efficiency and other similar investments.
give new clean energy markets another financing option.
It’s also important to note the CECU is a federally insured credit union, where advocates and enthusiasts can put their money and feel good about how their money is being used.

SolarWakeup’s View: I can’t believe someone hasn’t done this already.

Yann Brandt, managing editor of SolarWakeup, flew to Colorado to chair a panel at the Colorado Solar Energy Industries Association (COSEIA) conference with Blake Jones and Terri Mickelsen, the driving forces behind a new solar financing vehicle called the Clean Energy Credit Union. As Jones says, it’s a place where clean energy geeks can park their money and know that the loans it is used for align with your values.

I say it surprises me that no one has done this already, but that’s not really true. After listening to the podcast, I have a much greater appreciation for the hurdles Jones and Mickelsen had to clear before they could even open the credit union for business. As a “21st century financial institution,” of course, the entire operation is online – and the savings collected from not having brick-and-mortar locations will be passed on to borrowers in the form of lower interest rates.

The podcast is quite mesmerizing. It’s not an easy road Jones and Mickelsen (and the rest of the team at CECU) have chosen. But they are confident that they are starting a movement that will draw more traditional financial institutions into the space and make loans for clean energy as ubiquitous as car or home loans.

Here’s wishing them the best.

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