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Marin Clean Energy Secures Power for Future Customers

Consumer aggregate will purchase 680,000 megawatts of clean electricity.

 

Marin Clean Energy recently secured a renewable power supply that will be ready to deliver energy to Marin resident in mid- to late-2011 from two landfill gas-to-energy projects from G2 Energy LLC of Atlanta. 

In January 2015, the fledgling energy supplier will begin receiving carbon-free hydroelectric power from a contract awarded through the Western Area Power Administration.

The two projects developed by G2 Energy are similarly sized existing landfill gas facilities in Yuba and Solano counties. Both projects are for new gas supply from expansion of existing energy facilities for a 20-year term with an option to extend for five additional years, according to the Marin Energy Authority.

"We think it is important to have a diverse source of resources," said Dawn Weisz, interim director of the agency. "It's important for reliability."

Marin Clean Energy (MCE) is an energy supply program of the Marin Energy Authority, a publicly approved, not-for-profit joint powers authority that includes of the County of Marin and the cities of San Rafael, Mill Valley, Fairfax, Sausalito, San Anselmo, Tiburon and Belvedere. The authority administers the program as alternative to PG&E. In May 2010, MCE began delivering energy to its first customers and will continue to phase in new customers through January 2012.

The Western Area Power Administration, a federal power marketing administration of the U.S. Department of Energy, also announced MCE’s allocation of approximately 20,000 annual megawatts of hydroelectric power from a project in Douglas County, Oregon. The contract with WAPA will remain in effect through 2024.

Under the terms of these nine- and 20-year contracts, MCE is expected to purchase 680,000 megawatts of clean electricity for its customers.

Shawn Marshall, vice chair of the MEA board, said the latest round of accomplishments by the authority benefit not only Marin County but all of California.

"MCE continues to prove that its community energy program is a sound business model," Marshall said. "It means we are delivering our promise way before any established deadlines. I think it sets up well with our residents and businesses who are going to be next up in future phases as we bring customers on board."

MCE is focusing on securing new renewable energy sources through about the end of the year and will begin a second phase of the program once that is established, Weisz said. 

She said the agency serves about 9,000 customers currently and hopes to increase the base to 70,000 rate payers in the second phase next year. There are about 100,000 households in Marin.

"We need to produce power for that customer base and then notify customers they can be enrolled in the program," Wiesz said. "The first step is to line up power supplies, so that is what we will be working on for the next six months." 

Current state investor-owned utilities have approximately 26.5 percent of its energy supplied by renewable sources. MCE’s energy mix is currently 78 percent greenhouse-gas free, according to its reports, and MCE expects an average annual reduction of 123,844 tons of greenhouse gas emissions — which is approximately the equivalent of taking 21,482 cars off the road, according to the agency.

MCE's power supply service competes directly with PG&E, the San Francisco-based investor-owned utility, which has not yet reached state renewable required standards.

Katie Romans, a PG&E spokeswoman, said the utility has fallen slightly behind the state goal of 20 percent by 2010, but has been permitted the flexibility to reach that standard by 2013. 

"We have some aggressive programs to help with that," Romans said. "Half our energy is from renewable or carbon-free sources."

She said the utility is pursuing contracts for wind, solar, geothermal and biomass power.

Both Romans and Weisz said the two agencies have been working together to make the delivery of MCE power to consumers as seamless as possible. Although MCE supplies the energy, distribution and transmission will continue to be offered by PG&E through the transmission lines already in existence.

But Marshall said the utility is still using tactics to prevent the program from being successful, referring to a June 2010 ballot measure PG&E funded to the tune of millions of dollars to block the competition from the authority.

Last week MEA consolidated its start-up costs with a $2.3 million loan with River City Bank of Sacramento, allowing it to repay $540,000 that was approved by the Marin County Board of Supervisors in 2008. In addition, the loan relieves the county of a $950,000 loan guarantee along with a $100,000 guarantee by the  town of Fairfax. 

Fairfax Mayor Larry Bragman said MEA officials will present the town with a check for about $7,300 at its town council meeting next Wednesday. The money represents what he likened to an interest payment for the loan guarantee.

"It obviously reaffirms our faith in Marin Energy Authority's business model," Bragman said. "I'm really pleased about it. In this day and age it's a good plug for a courageous and innovative program."

Weisz said customers who signed on early are providing positive feedback, saying they are happy to have the opportunity to do their own part to reduce greenhouse gas emissions.

"This gives the customers a choice and a way to take action in an easy way to help reduce climate change," Wiesz said. "They are happy we have local decision-making in Marin. When we talk about rate setting, it will be here in San Rafael — we are more accessible and have more opportunity for local control."

Related Topics: Marin Energy Authority
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