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Home My WebLink About20231108 - Sustainability Advisory Board - Green Power Program - Term Sheet - Final Recommendation Green Power Program Term Sheet Foundational Design 0 Natalie Meyer, Gry of Bozeman MT M;_� R 7 N nni55oUia Today ' s Presentation • Where we 've been • Guiding principles • Program design • Program process • Key commitments and financial impacts • Impact of adopting term sheet • Recommended motion MT MTs—SOUL� Missoula BZN Where eve Been Dec. 2019 Dec. 2020 PSC directs 100% clean NWE to electricity explore adopted under green tariff Bozeman Climate Plan Dec. 2019 June 2020 Feb. 2021 Provisional Missoula MOU goal of with Interlocal 100% clean between Green Power Program NorthWestern Missoula electricity Energy Design County, Cities of signed Missoula, Bozeman, Helena MT MtssouLA BZ N Missoula C O U N T Y What Is A Green Power Program .9 Availability of Utility Green Tariff Programs Click a state below for details on available green tariffs An option for NApproved green tariff(s) Approved green tariff(s)and green tariff pending approval customers of �Green tariff pending approval regulated utilities to buy power from newly developed renewable energy sources through a special rate ("tariff") on their utility bills. qk Source:Clean Energy Buyers Assocation•Data as of January 2023 MT Mtsso LA Missoula BZN COUNTY '' - - ding Principles 1 . Develops new, utility-scalF renewable energy in Montana 2 . Program rates, contract terms, and eligibility requirements are as accessible and attractive to as many customers as possible 3 . Program does not negatively impact non- participating customers r.�� MT Missoula �` Where We Are Now Dec. 2019 Dec. 2020 PSC directs 100% clean Nov./Dec. NWE to electricity 2023 ' explore adopted under Green Power ' p green tariff Bozeman ' Program Term � Climate Plan ' Sheet Dec. 2019 June 2020 Feb. 2021 Provisional Missoula MOU goal of with Interlocal 100% clean between Green Power Program between Missoula electricity Energy f Design y, Cities o si County, Missoula, Bozeman, Helena MT MIsSOULA BZ N Missoula C O U N T Y GP1 : New, utility-scale renewable energy • New solar or wind resource, potentially paired with storage, located in Montana • Size will be capped at 50 MW for the initial phase of the program MT RssouLA Missoula BZN couw , . GP2 .* Accessible and attractive • Contract terms and eligibility • All local government, commercial, and industrial Northwestern Energy electricity customers may participate for the depreciable life of the project • Residents in participating jurisdictions will have the ability to opt-in for short term subscriptions • Participation is completely voluntary MT MTs-SOUL- Missoula BZN GP2 *, Accessible and attractive • Program rates ( Fixed costs) - ( F�oatinq credit) = Subscription rate • Floating credit based on the market value of the electricity produced . • Early modeling indicates a modest premium with the potential for a bill credit. MT RssouLA Missoula BZN __ couw , . a Puget Sound ner a r e t Energy Powerex Seattle City Light Tacoma Power Avisto Avangrid NorthWester* • The Western Energy Imbalance Market Portland Bonneville Energy General Power Electric Administration (WEIM ) is a real -time energy market that Idaho Pac i f!Corp P generates cost savings for its participants � PocifiCor and enhances grid reliability BA E,,, Turlock on • Fullyautomated market topurchase and c Ca sot;ta sell excess energy Los Angeles � .Arizona Dept. of l Public Service hasparticipated tr ol Service� ` P ;• NorthWestern in the Power r°� Public NemwMexico Southwest WEIM since June 2021 EI Paso Tucson/ _ Electric Electric Power • The energy credit for the Green Power Program will be based on EIM market prices MT Is MSOULA BZN Missoula C O U N T Y G P3 : No impact to non - participants • Cost of the project will be incorporated into the subscription rate • The program design ensures that the program costs are fully recouped from program subscriber ANIL MT "' Missoula BZN Additional Provisions • Process for PSC approval, commercial and industrial recruitment, and RFP issuance . • Opportunity to participate through the depreciable life of the project, with the option to extend . • Names communities as lead marketers of the program . • Agreement to collaborate on future projects. • Retirement of renewable energy credits (RECs) on behalf of participants MT —h`�ULA Missoula BZ Where We Are Go *in Nov./Dec. 2023 Green Power Program Term Sheet MT 74, so'LAB Z N Missoula C O U N T Y Where We Are Go *in Nov./Dec. 2023 Green Power Program Term Sheet Early 2024 Lead Community Agreement MT MI SOULABZN Missoula C O U N T Y Where We Are Go *in Nov./Dec. 2023 2024 Green Power Program Term Joint Tariff Sheet filing to PSC Early 2024 Lead Community Agreement 'ANIL MT MtssouLABZ N Missoula C O U N T Y Where We Are Go *in Nov./Dec. 2023 2024 Green Power Program Term Joint Tariff Sheet filing to PSC Early 2024 2024 Lead Notices of Community Interest Agreement submitted after PSC approval MT MISSOULA BZN Missoula C O U N T Y Where We Are Go *in Nov./Dec. 2023 2024 Green Power Program Term Joint Tariff 2025 Sheet filing to PSC RFP Process Aft NF Early 2024 2024 Lead Notices of Community Interest Agreement submitted after PSC approval MT MISSOULA BZN Missoula C O U N T Y Where We Are Go *in Nov./Dec. 2023 2024 Green Power Program Term Joint Tariff 2025 Sheet filing to PSC RFP Process Aft Am Early 2024 2024 2025 Lead Notices of CommunityInterest Subscription Agreements Agreement submitted after PSC submitted approval MT MtssouLABZN Missoula C O U N T Y Where We Are Go *in Nov./Dec. 2023 2025 Green Power 2024 Compliance Program Term Joint Tariff 2025 filing with Sheet filing to PSC RFP Process PSC Aft Am Early 2024 2024 2025 Lead Notices of CommunityInterest Subscription Agreements Agreement submitted after PSC submitted approval , MT MtssouLABZN Missoula C O U N T Y Where We Are Go *in Nov./Dec. 2023 2025 Green Power 2024 Compliance Program Term Joint Tariff 2025 filing with Sheet filing to PSC RFP Process PSC Am Am Early 2024 2024 2025 2025/2026 Lead Notices of Program CommunityInterest Subscription Agreements launch Agreement submitted after PSC submitted approval , MT MtssouLABZN Missoula C O U N T Y �•., �. �'��; I �h ? � c - . _. _ .. - - f ��•w ` ram am% M 0 M Form Binding? Financial Focus of Further g ' Impact? Discussion Term Sheet framework of program design Lead Community Agreement Yes roles & responsibilities (to file with PSC RFP timeline details � • . RFP design & issuance process y for RFP) Tariff YesPricin structure • residential • _ • commission approved program design (Legal r- • - - - • Notice of Interest non-binding load information to inform RFP Subscription Form Yes Yes Residential term and binding subscription for the useful life of the (to purchase energy) (new electricity rate) administration project What Does This Mean ? • Agreement on term sheet is foundational first step in program execution • It is the guiding document for finalizing subsequent program forms • Lead Community Agreement is Tariff Filing • Notice of Interest • Subscription Agreement • Key strategy to reach 100% clean electricity �� MT Mrs souEA BZN Missoula couw , . Recommender motion Having reviewed and considered the draft Green Power Program Term Sheet, public comment, and all information presented , I move to recommend approval of the draft Green Power Program Term Sheet as written and request staff to forward our recommendation to the City Commission . Ak� MT M Missoula BZ� Is A Green Power Program7. Availability of Utility Green Tariff Programs Click a state belovv for details on available green taritts An option for NApproved green tariff(s) Approved green tariff(s)and green tariff pending approval customers of �Green tariff pending approval regulated utilities to buy power from newlydeveloped renewable energy sources through a special rate ("tariff") on their utility bills. E .RC.E Source:Clean Energy Buyers Assocation•Data as of January 2023 M I s s o u L A Missoula e ey OF FIVE VA`` COUNTY Energy • The Western Ener Imbalance Market PuyetSaun � Energy, Powerex gy Seattle (WEIM ) is a real -time ener market that CTacom'�` \I _ g y Tacoma J��-ANNE— Power Avista generates cost savings for its participants APortl d NorlhWeslern �._ Portland/ Bonneville Energy General Administration and enhancesgrid reliabilit Eacifiy Idaho tz PacifiCorp P acifiCor�p • Fully automated market to purchase and BA P sell excess energy Turllk Iffig Dis • NorthWestern has participated in the " cSero of Public Service Water& Salt River Public Servico • Power Project Company of WEIM since June 2021 Southwest rl New Mexico Southwest -EI Paso Tucson iEleclric • The energy credit for the Green Power Electric Power Program will be based on EIM market prices Missoula • 5 issoula La 0F FIVE VP``�{ COUNTY What is a Green Power Program ? An option for customers of Availability of Utility Green Tariff Programs Click a state below for details on available green tariffs regulated utilities to buy MApproved green tariff(s) Approved green tariff(s)and green tariff pending approval power from newly developed Green tariff pending approval renewable energy sources through a special rate ("tariff") on their utility bills. r Source:Clean Energy Buyers Assocation•Data as of January 2023 TheEnergyMarket Puget Sound Energy Powerex Seattle • The Western Energy Imbalance Market (WEIM ) City Light Tacorna_- Power Avisla is a real-time energy market that generates Avangrid 1 NorlhWestern cost s a v i n s f o r its a rt i c i Electric ants and enhances Portland ` B e Power Energy g p p General Administration clako , grid reliability l PacifiCorp -4 Powerower • BANC PacifiCorp- NorthWestern has participated in the WEIM NV j p p Energy since June 2021 Irngoti Tiati ,, on� District Californio • The energy credit for the Green Power °S,� �e !, IZ°na g Pubhc Service Program will be based on EI M market prices Power ' rnpanService f WateDept,r 8� Solt River Company of Power Project WAPA New Mexico Southwest - J EI Paso Tucson'/ _ Electric Electric Power