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City of Tukwila <br />Allan Ekberg, Mayor <br />INFORMATIONAL MEMORANDUM <br />TO: <br />Transportation & Infrastructure Committee <br />FROM: <br />Laurel Humphrey, Council Analyst <br />CC: <br />Mayor Ekberg <br />DATE: <br />June 7, 2017 <br />SUBJECT: <br />Puget Sound Energy- Green Direct <br />ISSUE <br />Presentation from Puget Sound Energy on Green Direct <br />DISCUSSION <br />The following information was provided by Puget Sound Energy: <br />Background <br />Schedule 139, Voluntary Long Term Renewable Energy Purchase Rider, was approved by the <br />Washington Utilities and Transportation Commission (WUTC) and became effective on September 30, <br />2016. The tariff, referred to as Green Direct, falls under the rules governing utility green pricing options <br />found in Washington RCW 19.29A - Voluntary Option to Purchase Qualified Alternative Energy <br />Resources. <br />Puget Sound Energy (PSE) already offered three products consistent with the state law: the Green <br />Power Program (Schedule 135) for residential and small - commercial customers; Large Volume Green <br />Power (Schedule 136) which provides a volume discount for purchases of at least 1,000 MWh, <br />annually; and Bulk Renewable Energy Credit (REC) Purchases whereby customers can acquire a <br />minimum of 10,000 MWh of excess RECs from PSE's wind projects. All three of these products involve <br />the sale of RECs. <br />However, PSE found that many of our large commercial and municipal customers were looking for <br />something different to help them meet their goal of lowering their carbon footprint with cost - effective <br />alternatives to the PSE portfolio. They wanted the benefit of long -term pricing and direct access to <br />new renewable energy projects. As a result of numerous discussions and stakeholder input, PSE <br />created Green Direct - a product that allows the utility to procure and sell fully bundled renewable <br />energy to large commercial and municipal customers, from a specified wind resource, and within the <br />Washington regulatory framework. <br />Defining Principles <br />During the creation of this product, PSE met with many commercial and municipal customers to <br />gauge their interest and align the key components. In addition to customer discussions, PSE also <br />conferred with representatives from the World Resources Institute (WRI) as well as the Edison Electric <br />Institute (EEI). The WRI and the World Wildlife Fund (WWF) started a discussion with some of the <br />country's best known commercial firms, which resulted in the "Corporate Renewable Energy Buyers' <br />Principles." The principles are consistent with PSE's findings and provide support for PSE's plan to <br />provide a few new choices. The top priorities in the principles are: <br />