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Green Tariffs

Develop a Team to Utilize the Green Tariff Program

Unlike other renewable energy initiatives that may require a city team with technical expertise (e.g., the use of a physical power purchase agreement [PPA] requires knowledge of how to buy and sell energy in the energy market), utility green tariff programs are more straight forward. The utility is responsible for the technical management of the renewable energy. When the customer plays an active role in establishing a green tariff project (e.g., when a customer leads the process of negotiation with the renewable energy developer), the utility will partner with and support the customer’s efforts.

The city’s team should include:

  • Finance

    Work closely with the city’s internal financial team or team members with economic expertise to evaluate any anticipated increase in cost or potential long-term savings from participating in the green tariff program.

  • Energy Management

    Staff responsible for managing the city’s current energy and utility bills should be enrolled to understand and evaluate the various rate structures and facilitate engagement around potential impacts to future utility bills.

  • Procurement

    While green tariffs are operationally straightforward, you should plan to engage with your procurement department to understand their restrictions and requirements for procurement processes. For example, you will need to know whether city procurement is cyclical and whether individual departments or agencies have different procurement requirements.

  • Legal

    You will likely require some aid from your legal team, including reviews of any contractual limitations, changes in electric service, or impacts to your utility franchise agreement.

Outcome

  • A clear understanding of what green tariff programs are available and their key terms, benefits, and risks
  • An established relationship with your utility provider and a clearer understanding of program details
  • The development of a team with key members to help guide the procurement process
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