Voluntary Green Pricing Program

Public Act 342, Section 61 requires that an electric provider offer to its customers the opportunity to participate in a voluntary green pricing program under which the customer can specify, from the options made available by the electric provider, the amount of electricity attributable to that customer that will be renewable energy.

Yes. Customer’s electing this premium service option will receive an additional charge per kWh, currently set at $0.0042, for the specified amount of electricity that is renewable.

The rate will be modified when the utility executes a purchase agreement for new renewable resources or on a biennial basis, whichever comes sooner.

Customers have the option of choosing 25%, 50%, 75% or 100% of their consumption come from renewable energy.

Yes. TCLP currently provides 20% of its electricity through renewable sources. Customers electing one of the options above will be charged that amount less 20%. As an example, if a customer elected 50% renewable, the additional per kWh rate would only apply to 30%.

There are no requirements on the length of time a customer must remain in the program. All participants electing to sign up will be enrolled until notification from the customer is received requesting termination.

Unfortunately, it is physically impossible to distinguish and deliver individual electrons to specific homes or businesses. TCLP’s electricity is generated using multiple sources such as wind, coal and solar. This generated electricity gets pushed up into the “electric grid” which is a vast network of wires that transmits electricity coming from all fuel sources. By choosing green power (purchasing Renewable Energy Certificates to match your consumption) you are ensuring that renewable electricity is being delivered to the power grid on your behalf.

Because it is physically impossible to distinguish the origin of where the electricity comes from or how it was generated, a Renewable Energy Certificate (REC) is the instrument used to account, track and assign ownership to renewable electricity generation and use. 

A REC is issued when one megawatt-hour (MWh) of electricity is generated and delivered to the electricity grid from a renewable energy resource. Over the years, TCLP has acquired many RECs, either as the producer of renewable energy through projects such as the M72 Wind Turbine or purchased power from other renewable energy projects. When customers purchase renewable energy under the VGP program, they are essentially buying the green energy that resulted in the receipt of the REC. When a customer buys green electricity from a utility, what they are really doing is paying the utility to retire a set number of RECs. When a business says it is “powered by 100 percent clean electricity,” it means it bought and retired a number of RECs equal to its power consumption.

Click on this short video RECs: Making Green Power Possible to learn more about the role of a REC.

TCLP has excess RECs, therefore does not have to purchase them on behalf of a customer signing up for the VGP Program.  Because of this, the Board recently adopted a policy that would dedicate the net excess revenues from the VGP Program toward approved City of Traverse City energy waste reduction projects in government owned buildings. The excess net revenues generated will continue to go towards assisting the City in reaching its 100% renewable energy goal.