The EssentiaList

• What are your thoughts about this program?
• Is this legit?
• What are ‘green tags’ or ‘Renewable Energy Certificates’ (RECs)?
• Since the power delivery is via your lines, would I still get member capital credits, or will those go to Arcadia?
• Is the wind power generated in Montana?
• When there is a neighborhood power outage, who is responsible (FEC, Arcadia, or me as the home-owner)?
• Do you know if I would pay a penalty if, after trying this for a few months, I decided to go back to FEC power?

From Don’s response

What are your thoughts about this program?

Don’s response:

“Arcadia provides a bill pay service with green tags and is a slick marketing program to take advantage of good people wanting to do good things. After you read the fine print on their web site it is clear they do not purchase wind power and deliver it to your home.

Our members can do better by taking a look at our existing programs and pay their bill on their own.”

Is this offer from Arcadia legit?

Arcadia Power is a legitimate company that buys green tags (Renewable Energy Certificates or RECs) for wind power (see next section for explanation of RECs). They also pay your bill to FEC, then bill you for the amount of your FEC bill plus the cost of the RECs. They may also be getting Green-e certified.

In other words, they are a bill-pay service. Their bill to you includes the amount of your FEC bill plus fees for the green tags they use to purchase Renewable Energy Certificates (RECs) from a wind farm.

FEC will still supply the power and maintain their power grid.

Your relationship with FEC remains the same except for the changes in the bill delivery.

What are Renewable Energy Certificates (RECs)?

According to Wikipedia, RECs or green-tags are

“tradable, non-tangible energy commodities in the United States that represent proof that 1 megawatt-hour (MWh) of electricity was generated from an eligible renewable energy resource (renewable electricity) and was fed into the shared system of power lines which transport energy.

These certificates can be sold and traded or bartered, and the owner of the REC can claim to have purchased renewable energy.”

In other words, when you participate in programs like Arcadia Community Wind Program (8) or FEC’s Renewable Energy Program (2), the extra monthly charge you pay is used to add more wind energy to the grid. Note that Arcadia doesn’t add the wind power to the grid; they sell their RECs to the participating power company (FEC) to buy the wind power and add it to the grid.

While the power delivered to your home is a mix of all energy sources, the more RECs purchased for renewable energy such as wind power, the relative amount of that power on the grid increases by 1 megawatt hour per REC.

Don at FEC recommends  this  cute video that explains Renewable Energy Certificates (RECs) (See reference (1) for link, if viewer does not display below.

Is this offer from Arcadia legit?

Arcadia Power is a legitimate company that buys green tags (Renewable Energy Certificates or RECs) for wind power. They also pay your bill to FEC, then bill you for the amount of your FEC bill plus the cost of the RECs. They may also be getting Green-e certified.

In other words, they are a bill-pay service. Their bill to you includes the amount of your FEC bill plus fees for the green tags they use to purchase Renewable Energy Certificates (RECs) from a wind farm.

FEC will still supply the power and maintain their power grid.

Your relationship with FEC remains the same except for the changes in the bill delivery.

Who gets FEC’s member capital credits?

As long as the FEC account is in your name (regardless of who pays the bill), you will get the capital credits. However, Don adds the caveat:

“I do not know about their contractual agreements so if you sign up with them you should read the fine print.”

FEC also offers a bill-payment service (through their billing service company) that will pay your electric bills for you for a fee; thus what Arcadia offers is not a new service.

Is the wind power generated in Montana?

Don did not answer this question directly, I assume because FEC doesn’t purchase your green tags – Arcadia does that.

He does state that the power you get from FEC comes from a broad power portfolio including hydro-electric, nuclear, wind, biomass, solar, etc. And that will not change even if all FEC members sign up with Arcadia.

Electricity is simply the flow of electrons, and FEC cannot tell exactly where each electron is generated, that is ultimately delivered to your home. However, since there are three large hydroelectric dams nearby, one can assume FEC’s power is predominately hydro-generated.

Don also states, ” It is physically impossible for Arcadia to deliver wind energy to you unless they are going to install transmission lines to your home. In general, electrical energy flows from sources to loads; and electrons cannot be herded.”

According to Montana law, FEC cannot unbundle their services to enter into an agreement with Arcadia and a wind power producer such as Bonneville Power Administration (BPA), for purpose of transmitting power that Arcadia purchases from  a wind generator, with intent to sell to someone in FEC’s service area. However, FEC can purchase the wind power to transmit over their own lines.

 

When there is a neighborhood power outage, who is responsible (FEC, Arcadia, or the home-owner)?

Don did not address this question, but based on his other comments, I would assume that FEC is still your contact for power outages, regardless of who bills you for your power, as they are the ones who deliver power to your home.

FEC’s green programs

FEC offers green programs that will accomplish the same as the Arcadia offer and much more. Don  provided the following information and links:

• Wind energy: FEC offers a Renewable Energy Program that allows members to purchase green tags (RECs ) used to support wind energy. Signing up for this program is easy; your rate for power does not change, but you pay an extra cost of $5 a month for addition of wind power to their portfolio. There is no cost penalty to start or stop the program. Please see the link for FEC’s Renewable Energy Program (2) for more information;
• Solar energy: FEC’s Solar Utility Network (SUN) program allows members to purchase a solar panel in a community project and receive the credits for that panel on your bill from FEC. Please see the link for FEC’s SUN Program (3);
• Monthly rebate credits: The Peak Time program is a demand response program that empowers members in helping FEC reduce peak power and save costs for all members. Please see the Peak Time link (4)
• Net metering and interconnection generation agreements: These member-friendly agreements apply if you add your own power source such as solar to provide energy to your home. You can sell any excess energy produced by such equipment to FEC for distribution on the grid. Please see the Net Metering link (5)
• FEC’s energy efficiency rebate programs: these incentivize members to choose more efficient solutions to improve the efficiency of their homes and/or businesses. As of this writing, these include home improvements such as certain energy-efficient appliances, heat pump water heaters, ductless heat pumps, air-source heat pumps, ground-source heat pumps, insulation upgrades, window replacements (if electrically-heated home), and more. Please see the link on Energy Efficiency Rebates (6)

Contact Flathead Electric Cooperative if you have more questions about their services and programs. The Kalispell number is 406-751-4483; Libby number is 406-293-7122.

Federal and State Income Tax Credits 

In addition to rebates from FEC for certain electric heating/cooling appliance installations, federal and state tax credits for 2016 are also available for certain electric or gas upgrades. Ask your tax preparer for help.

References:

1. You Tube video: youtube.com/watch?v=opJMrzNauFQ&feature=youtu.be
2. FEC’s Renewable Energy Program: flatheadelectric.com/efp/renew.php
3. FEC’s SUN Program: flatheadelectric.com/energy/sun/sun.html
4. FEC’s Peak Time Program: flatheadelectric.com/energy/peak/index.php
5. FEC’s Net Metering Program: flatheadelectric.com/energy/netmeter.html
6. FEC’s Energy Efficiency Rebates: flatheadelectric.com/energy/Rebates.html
7. Wikipedia on RECs: en.wikipedia.org/wiki/Renewable_Energy_Certificate_(United_States)
8. Arcadia Power’s Community Wind Program (arcadiapower.com/20wind)