What are Renewable Energy Certificates?
Renewable Energy Certificates, or RECs, are the property rights[1] to the environmental benefits from generating electricity from renewable energy sources, such as solar, wind, geothermal, biomass or hydroelectricity. One REC results from 1,000 kWh of electric energy generated from a renewable source. So, one REC is equal to 1,000 kWh. The average residential customer uses about 629 kWh of electric energy each month.
Will renewable energy be delivered to my home or business?
RECs do not have an energy component. They are the property rights to the environmental benefits from generating electricity from renewable energy sources, such as solar, wind, geothermal, biomass or hydroelectricity. By sponsoring RECs, you support renewable energy projects in the United States.
Do I own RECs after I pay for them?
We retain ownership of the RECs. We will retire a REC for each 1,000 kWh of RECs paid for by customers. After a REC is retired, it cannot be re-sold a second time to another customer[2]. Your investment will help us pay for future RECs purchases.
What are the eligibility requirements and how much does it cost?
To sponsor RECS, you must be a Springs Utilities customer and your account must be current. The cost is $0.34 for each 100 kWh block of RECs.
Where will RECs charges show up on my utility bill?
REC charges are combined with your electric service charges and appear on the front of your bill under “current utility charges – electric.” On the back of the bill, REC charges will appear on your monthly utility bill as a separate section under “details of your utility service.”
What are the environmental benefits?
Benefits include the reduction of pollution into the earth’s atmosphere, reduced coal mining and gas drilling, and the reduction of water resources used for power plant cooling. Many people consider the primary environmental benefit of RECs to be the reduction of emissions of global warming gases. Renewable sources use natural resources, like sunlight and wind, to generate electricity and are naturally replenished and sustainable indefinitely.
How does a reduction in carbon dioxide emission help the planet?
The Environmental Protection Agency estimates that the national average of carbon dioxide emissions is 1.535 pounds per kWh of electric power from nonrenewable sources. Therefore, one REC would be roughly equivalent to preventing the generation of 1,535 pounds of carbon dioxide. Similarly, one REC would avoid emissions of approximately five pounds of sulfur dioxide and two pounds of nitrogen dioxide into the atmosphere. If the average residential customer sponsored RECs that equaled his or her annual kWh usage, he or she could reduce annual carbon dioxide emissions by 11,586 pounds[3]. This is equivalent to[4]:
- one passenger car not driven for one year
- 597 gallons of gasoline not being used
- 135 tree seedlings grown for 10 years
If a business paid for one thousand 100 kWh blocks of renewable energy certificates for one year, annual carbon dioxide emissions would be reduced by 1.8 million pounds. The annual carbon dioxide reduction, 1.8 million pounds, is equivalent to:[5]
- 181 passenger cars not driven for one year
- 95,161 gallons of gasoline not being used
- 21,424 tree seedlings grown for 10 years
What renewable sources am I supporting?
The RECs we purchased from Western Area Power Administration are associated with wind and geothermal renewable projects. We acquire solar RECs from our Renewable Energy Rebate Program, but we use those RECs for Colorado Renewable Energy Standard[6] compliance.[7]
What are the benefits if I sponsor RECS?
By sponsoring RECs, you support environmentally-friendly energy purchase options throughout the country that:
- Help reduce pollution
- Support new, emerging renewable technologies
- Encourage energy independence
If I sponsor RECs does it have an effect on the electric cost adjustment?
No. RECs are environmental benefits that have no energy component so the purchase of RECs will not reduce or eliminate your electric cost adjustment. The electric cost adjustment is used to true-up our actual cost for power plant fuel and power purchases. The adjustment generates only enough revenue to cover the changing cost of fuel and purchased power.
Are there any contract terms or cancellation fees?
There are no contract terms or cancellation fees; however, cancellation takes effect as of your last billing period. The rate is billed monthly and will not be prorated.
How do I sign up for Renewable Energy Certificates?
Use our online form or call 448-4800.
[1] A “property right” is a legal right or interest in specific property. In this instance, the legal right applies to environmental benefits the REC possesses (i.e., reduction of pollution into the earth’s atmosphere).
[2] The REC value is $3-$20 on the open market. Springs Utilities will retire RECs after you pay the tariff rate of $0.34 per 100 kWh block.
[3] This number represents the pounds of carbon dioxide that is not being emitted into the air, so the air is cleaner. Because the purchased RECs support renewable projects in California, the air is cleaner in California, not Colorado.
[4] Source: U.S. Climate Technology Cooperation Gateway Greenhouse Gas Equivalencies Calculator
[5] Source: U.S. Climate Technology Cooperation Gateway Greenhouse Gas Equivalencies Calculator
[6] Colorado’s Renewable Energy Standard is located at Section 40-2-124 et. seq., Colorado Revised Statutes
[7] RECs purchased from Western Area Power Administration support renewable projects in California. Solar RECs are generated from Springs Utilities Renewable Energy Rebate Program.
