In early 2019, Cape Light Compact launched CLC Local Green, which provides Power Supply Program customers with the chance to have an additional 50% or 100% of their annual electricity usage matched with clean energy generated right here in New England. How does this program work? Let’s dive in!
The Role of Renewable Energy Credits (RECs)
Through its Power Supply Program, the Compact aggregates the annual electricity load of its participating customers, and then solicits bids from suppliers to meet this energy demand. Since 2017, the Compact has taken the additional step of ensuring its suppliers match 100% of this electricity with Renewable Energy Credits (RECs).
Since there is no way to distinguish renewable versus non-renewable energy at the point of use, RECs provide a mechanism to track renewable energy at the point of production. One REC is generated for every 1,000-kilowatt hours of renewable energy produced by qualified renewable energy facilities in the United States.
Like many states, Massachusetts has its own REC classifications. Class I RECs are associated with energy generated by qualifying renewable power facilities in New England. The state also has its own Renewable Energy Portfolio Standard (“RPS”) that requires electric suppliers to match a percentage of supplied power with RECs. This required percentage grows each year. In the case of the Compact’s standard Power Supply Program, NextEra purchases 1% more Class 1 RECs than is required by the RPS, plus purchases enough additional RECs to match the annual energy use of all program participants.
The Uniqueness of CLC Local Green
Through CLC Local Green, customers can opt to have either an additional 50% or 100% of their annual energy use matched with Massachusetts Class I RECs. In the near-term, many RECs for CLC Local Green will come from nearby solar projects on Cape Cod, whereas offshore wind may account for a larger number of these RECs in the future. The more customers who partake in CLC Local Green, the more widespread locally-generated renewables will become: purchasing and retiring RECs not only creates the need for more renewables to come online to meet growing demand, but it also creates a tighter REC market, which means more valuable RECs, and, in turn, more motivation for project developers to build additional renewable energy projects.
Wondering how participating in CLC Local Green would impact your electric bill? Since the average monthly energy use among Compact residential customers is around 550 kWh, the decision to opt-into the CLC Local Green with a 50% match equates to only around $7 more per month, whereas the 100% match equates to approximately $15 more per month. You can check out this online tool to get a more accurate estimate for your home.
For those who want to enroll, the process is easy, and it’s open to any resident or business on the Cape or Vineyard that has an Eversource electric account. Current Power Supply Program customers can contact the Compact by calling 1-800-381-9192 to opt-in. Those who are not current Power Supply Program customers can simultaneously enroll in the program and CLC Local Green by calling the same number or by signing up online through NextEra’s web portal. We hope you join us in taking advantage of this special program.
About Ann Luongo
