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January 2010 Member Newsletter
Click on the headlines below to read the complete article.
Safety Tip: Be Careful When Using Standby Generators
Notables: Cap and Trade 101
By Kevin Ritter, SMPA General Manager
Cap and Trade. What is it? What does it mean for my power bill? What’s the purpose of it? When will it take effect? How much will it cost? The list of questions goes on and on, and for some there are no concrete answers. The inner-workings of the cap and trade legislation are complex, but one thing comes through clear: trimming carbon dioxide emissions will be challenging and costly.
Congress has been debating cap and trade legislation for almost a year now. In that time they’ve taken what was a complicated, confusing and highly controversial plan and made it as clear as – well – mud. Make matters worse and try Googling cap and trade. You’ll get 2,000,000 hits. After sifting through the clearly biased – on both sides – sites and bypassing the ones filled with overly technical jargon, you might eventually stumble onto an easily understandable explanation.
Let us help. We’re going to introduce you to cap and trade legislation in the next few member newsletters. We’ll talk about what it is, the purpose behind the legislation, and the potential consequences, both good and bad. We’d like to start by explaining the idea of cap and trade legislation and how it works.
Essentially, cap and trade legislation allows the government to set a limit, or ‘cap’, on the total amount of carbon dioxide and other greenhouse gases that can be emitted nationally – the intent being to reduce greenhouse gases and address global warming. Large scale carbon emitters like power plants, factories and vehicles would have a limit placed on the amount of carbon they can emit annually.
The legislation currently being debated, also known as the Waxman-Markey bill, dictates that by 2020, emissions must be reduced to 17% below 2005 levels. By 2050, emissions must be reduced 80% or more. Staying under these caps is done with a system of permits or allowances. Here is where the trade comes in. Companies must have an allowance for every ton of greenhouse gas they emit. They are allowed to buy and sell, or ‘trade’, those allowances, but gradually the total number of allowances will be reduced, thus reducing overall emissions. Over time the cost of the allocations are expected to increase because of demand, which could impact power costs.
How are these carbon allowances given out in the first place? That’s the key question under any cap and trade plan. The government could auction them to the highest bidders, or give them away for free. One plan allocates them based on emissions and number of meters. Although the U.S. House of Representatives passed cap and trade legislation this June, this question will remain unanswered until the Senate begins its review process. With cap and trade taking a back seat to healthcare reform, it is unlikely that these details will be worked out before next fall.
Green Cents Makes Good Sense
If you could spend less than $1 per month to raise up to $70,000 for energy efficiency and renewable energy projects in your local community, would you? That’s the idea behind San Miguel Power’s new and improved Green Cents program.
In January of 2007, San Miguel Power launched a renewable energy initiative called Green Cents. It’s a simple program that allows members to invest in local energy efficiency and renewable energy programs by rounding up their monthly bill to the nearest dollar. The extra cents collected go directly into SMPA’s renewable energy fund.
After almost three years, Green Cents is getting a facelift. The program fundamentals aren’t changing. Members’ bills will still be rounded up to the nearest dollar, and the money will still go into the renewable energy fund. What is changing is how members participate.
As of February 1, 2010, all members will be automatically enrolled in the program. This will mean a change in your electric bill, beginning with the bill you will receive the first week of February. For example, if your bill is $43.27, it will be rounded up to $44. The extra 73 cents is your contribution to the Green Cents program. On average a member will contribute around $7 a year, but no more than $11.88.
How does that help raise $70,000? As of February 1, 2010 every SMPA member will be rounding up their bill and contributing to Green Cents. If all members participate, that’s 10,000 members donating $7 a year! Break that down even further, and it means 10,000 members are paying an extra 58 cents a month. That won’t even cover a cup of coffee, let alone a Ginger Bread White Mocha from the corner gourmet shop.
But, as the cliché so adequately states – united we stand, divided we fall. It’s up to the membership to decide the impact of Green Cents. Obviously, the more members who stick together in the program, the more opportunity SMPA will have to make an impact in our local communities.
Greens Cents offers you a simple and ‘cents’ible way to invest in renewable energy and energy efficiency. Most importantly, your money stays local. Green Cents contributions will fund community energy conservation and efficiency upgrades within SMPA’s service territory.
What’s more is the ability to customize your Green Cents contribution. Members can increase their donation by $1, $2, or more, knowing the money will be used locally to improve their communities’ energy usage.
We realize not every member will want to round up their bill, and we’re making it easy for you to opt out at anytime. There is a cancellation form attached to this newsletter that you can return with your payment, or you may call our customer service representatives at (970) 626-5549 or (970) 864-7311, Monday – Friday, 7:00 am – 5:30 pm. For more information contact SMPA Member Services at (970) 626-5549.
New Round of Rebates for 2010
In 2009, San Miguel Power offered rebates for items ranging from premium motors to freezers. And we’re doing it again in 2010.
In partnership with Tri-State Generation and Transmission (Tri-State), our wholesale power supplier, SMPA is once again offering rebates to members to purchase and install ENERGYSTAR appliances and other efficient systems. Eligible appliances include water heaters, refrigerators, freezers, washing machines and dishwashers. Rebates are also available for ground source heat pumps and premium electric motors.
Members who purchase an ENERGY STAR appliance or energy efficient system can apply for a rebate by contacting the SMPA Member Services department at (970) 626-5549. Members can also download the application online at www.smpa.com. The Energy Efficiency Credit Application must be completed and returned with proof of purchase.
Monies will also be available for a variety of commercial projects and pilot programs in 2010. Last year, SMPA helped the City of Ouray secure $14,500 in pilot project funds for their LED street light project from Tri-State, with SMPA matching that same amount.
In 2010, LED lighting will once again reign supreme. Tri-State has dedicated money for LED street lighting, providing a rebate equaling ¼ the cost of the light, with a cap of $200 per light. Rebates will also be available for LED refrigerator case lighting at $60 per door with a cap of $3,000 per project. Other programs include commercial light replacements, smart grid technology, LED security light replacements and LED commercial interior lighting. The rebate amounts and availability vary with each project. Contact SMPA Key Accounts Executive, Gary Miller, at (970) 626-0207 or gmiller@smpa.com if you’re interested in taking advantage of one of these programs or would like more information.
What about our renewable rebates? Don’t worry we didn’t forget about them. Last year, in partnership with the Governor’s Energy Office (GEO), SMPA rebated 27 solar photovoltaic systems totaling just over $87,000. The GEO provided matching funds. It is expected the GEO will announce their 2010 program line up in early spring. Look for updates in your member newsletter and online at www.smpa.com.
Safety Tip: Be Careful When Using Standby Generators
When severe weather, most notably, heavy snow, strong winds or avalanches, cause power outages, employees at San Miguel Power begin working immediately to restore service as quickly as possible.
Many members own standby generators just for such situations. However, San Miguel Power reminds you that an improper generator hook-up can cause serious safety problems.
It is important that your generator is equipped with a proper transfer switch. This switch transfers power from the SMPA lines to the generator. It senses the power interruption on the line and signals the generators engine to start. Likewise, when power is restored it signals the generator to shut down.
The switch also acts a barrier between the generator and SMPA’s utility service. If it is not there, the energy produced by the generator is fed onto SMPA power lines, endangering the lives of the men and women working on the lines to restore power.
Please make sure your standby generator is installed by a licensed electrician.
Contact San Miguel Power at (970) 626-5549 or (970) 864-7311 for information on installing and using standby generators safely.
