HomeMy WebLinkAboutBozeman City Commission Folder_NorthWestern Energy GPP_20260721Green Power Program:
Lead Community Agreement
Bozeman City Commission
Natalie Meyer
Sustainability Program Manager
City of Bozeman
Today’s Agenda
•The Big Picture: Why establish a Green Power Program (GPP)?
•Guiding Principles Behind Montana’s GPP
•Timeline and Process: Where We’ve Been, Where We Are Now, Where We’re Going
•Impact of Approving the Lead Community Agreement
•Future City Commission Steps
The Big Picture
The Green Power Program is a key strategy to reach 100% clean electricity, especially considering limited options in Montana, i.e.,
•No renewable or clean energy standards;
•Net energy metering cap;
•No enabling legislation for community solar; and
•Limited customer options for new clean energy through NorthWestern in its service territory.
What Is A Green Power Program?
An option for customers of regulated utilities to buy power from newly developed renewable energy sources through a special rate (“tariff”) on their utility bills
Impact of voluntary clean energy deals
•Commercial buyers have added 143.8 GW¹of clean
energy in the US
•Estimated 370 GW²of installed clean energy in the US
•Voluntary deals represent up to 40%of installed clean energy
1.CEBA: https://ceba.org/programs/deal-tracker/
2.ACPA: https://cleanpower.org/resources/clean-power-quarterly-market-report-q1-2026/
Guiding Principles
1.Develops new, utility -scale 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
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
•The resource will be owned and operated by NorthWestern
Scale of renewable energy resource
•50 MW =1,000 times the 50 kW net energy metering cap
•For a hypothetical wind energy resource:
10%closer to our clean electricity goal
35% of commercial electric load subscribes ≈
8.2 MW
50% clean electricity offset ≈
45.5 MW
Bozeman community electricity = 326,777 MWh
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
GP2:Accessible and attractive
•Program rates
•(Fixed costs) –(Floating credit) = Subscription rate
•Floating credit based on the market value of the
electricity produced, plus capacity credit
•Early modeling indicated a modest premium
•Expiration of clean energy tax credits may have a
significant impact on program economics
GP3: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 subscribers
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 certificates (RECs) on behalf of participants
Where We’ve Been
Dec. 2019
Provisional
goal of
100% clean
electricity
Dec. 2019
June 2020
Missoula MOU
with
NorthWestern
Energy
signed
Feb. 2021
Dec. 2020
100% clean
electricity
adopted under
the Bozeman
Climate Plan
Green Power Program
Design
PSC directs
NWE to
explore
green tariff
Interlocal
between
Missoula
County, Cities of
Missoula,
Bozeman,
Helena
Jan.2024
Green Power
Program Term
Sheet Approved
Where We’ve Been
Dec. 2019
Provisional
goal of
100% clean
electricity
Dec. 2019
June 2020
Missoula MOU
with
NorthWestern
Energy
signed
Feb. 2021
Dec. 2020
100% clean
electricity
adopted under
the Bozeman
Climate Plan
Green Power
Program
Design
PSC directs
NWE to
explore
green tariff
Interlocal
between
Missoula
County, Cities of
Missoula,
Bozeman,
Helena
Jan.2024
Green Power
Program Term
Sheet Approved
Summer 2026
Le ad
Community
Agreement
Approval
What is the Lead Community Agreement?
•The Lead Community Agreement (LCA) outlines roles and
responsibilities for the Lead Communities and NorthWestern
to bring the GPP to the Public Service Commission (PSC),
including:
•RFP design and process specifications
•Each community signs its o w n LCA with NorthWestern
•Then, the Lead Communities and NorthWestern jointly file the
GPP Tariff * rate structure with the PSC
* “Tariff”: formal term for an approved rate structure.
Additional Provisions
•Lead Community Agreement Includes:
•PSC filing date on or before September 15, 2026
•City of Bozeman municipal non-binding Notice of Interest with expected load commitment
•9,622,880 annual kilowatt hours (akWh )
Where We’re Going
Green Power
Program
Design
Jan. 2024
Green Power
Program Term
Sheet Approved
Where We’re Going
Green Power
Program
Design
Jan. 2024
Green Power
Program Term
Sheet Approved
Summer
2026
Le ad
Community
Agreement
Approval
-Roles &
Responsibilities
-RFP Design &
Process
Where We’re Going
2026
Joint Tariff
filing at PSC
Green Power
Program
Design
Jan. 2024
Green Power
Program Term
Sheet Approved
Summer
2026
Le ad
Community
Agreement
Approval
-Roles &
Responsibilities
-RFP Design &
Process
Where We’re Going
2026
Joint Tariff
filing at PSC
2027
Notices of
Interest
submitted
after PSC
approval
Green Power
Program
Design
Jan. 2024
Green Power
Program Term
Sheet Approved
Summer
2026
Le ad
Community
Agreement
Approval
-Roles &
Responsibilities
-RFP Design &
Process
Where We’re Going
2026
Joint Tariff
filing at PSC
2027
RFP p rocess
2027
Notices of
Interest
submitted
after PSC
approval
Green Power
Program
Design
Jan. 2024
Green Power
Program Term
Sheet Approved
Summer
2026
Le ad
Community
Agreement
Approval
-Roles &
Responsibilities
-RFP Design &
Process
Where We’re Going
2026
Joint Tariff
filing at PSC
2027
RFP p rocess
2027
Notices of
Interest
submitted
after PSC
approval
2028
Subscription
Agreements
submittedGreen Power
Program
Design
Jan. 2024
Green Power
Program Term
Sheet Approved
Summer
2026
Le ad
Community
Agreement
Approval
-Roles &
Responsibilities
-RFP Design &
Process
Where We’re Going
2026
Joint Tariff
filing at PSC
2027
RFP p rocess
2027
Notices of
Interest
submitted
after PSC
approval
2028
Subscription
Agreements
submitted
2028-2029
Compliance
filing with
PSC
Green Power
Program
Design
Jan. 2024
Green Power
Program Term
Sheet Approved
Summer
2026
Le ad
Community
Agreement
Approval
-Roles &
Responsibilities
-RFP Design &
Process
What‘s
Entailed?
Commits
the City?
Financial
Decision?
Lead Community
Agreement (LCA)
& Submit Notice
of Interest (NOI)
(current step)
-LCA: Ro le s &
Responsibilities, RFP
Design & Issuance
-NOI: Non-Binding
Load Information
Ye s-File Tariff at PSC with NorthWestern, Missoula City/County-RFP Cost Recovery (if LCA is terminated)
Ye s-RFP Cost Recovery (if LCA is terminated) Future Costs “As Needed” shown below
File Tariff at PSC -Commission-Approved
Program Design No As Needed-Legal Representation, Technical Expertise Costs
Recruit
Subscribers to
Submit NOI
-Non-Binding Load Information that Informs RFP No As Needed-Subscriber Engagement
Approve
Subscription
Agreement
-Binding Subscription for the Life of the Project Ye s-To Purchase Energy Ye s-New Electricity Rate
FUTURE CITY STEPS
Recommended Motion
I move to recommend that the City Commission authorize the City Manager to sign the Green Power Program Lead Community Agreement with NorthWestern Energy and administratively approve future minor changes.
Thank you!
Q&A