Blue Sky Program Updates for 2010
Changes in the Blue Sky Usage and Habitat Options Effective January 1, 2010
Due to growing demand for renewable energy in the West and a supply that is not keeping pace with this demand, the cost of renewable energy generated in the Western region is increasing.
Earlier this year, we surveyed Blue Skysm customers to help shape the direction of the program. The results were very clear – you want to support renewable energy and create environmental
benefits at a price that is affordable. We can help accomplish this by purchasing part of the renewable energy you support from outside the Western region.
The Blue Sky Usage and Habitat options changed on January 1, 2010, to keep pace with modifications in the renewable energy markets – but, you will still support 100 percent renewable energy, avoid emissions and encourage development of new renewable energy.
To learn more, click on any question below; click on it again to "close" it.
Price FAQs
- Why is the price of the Blue Sky Usage and Habitat options increasing?
-
Demand for renewable energy certificates in the Western region has been increasing faster than supply, which means renewable energy facility owners can command a higher price for their product. In general, this is a good thing for renewable energy — demand is growing and higher revenues from renewable energy credit sales can make building renewable energy facilities more attractive to developers.
Some factors leading to increased demand include participating customers like you, increased purchases from area businesses, and, the primary driver, Renewable Portfolio Standards in Oregon, Washington, and California which require utilities to buy more renewable energy for all their customers.
- How much is the price of Blue Sky increasing?
-
The Blue Sky rate is increasing by $0.0031 cents (less than a 1/3 of a penny) per kwh to $0.012 per kwh.
The typical Blue Sky customer, using 800 kwh a month, will pay $9.60 per month for 100 percent Blue Sky at the new rate.
- How often has the Blue Sky price increased in the past?
-
The price increased one other time since the program began in 2002.
- Will the price of Blue Sky increase again?
-
Pacific Power has signed an agreement with a renewable energy provider that includes provisions to provide price stability for customers. The new rate, which is expected to take effect January 1, 2010, is guaranteed to not change through December 2012, subject to the condition that the Oregon Public Utility Commission not adopt modifications to the Usage and Habitat programs which would necessitate a change in the price of these programs.
- Does Pacific Power earn a profit from my Blue Sky participation?
-
No. Pacific Power does not profit from any of the Blue Sky options.
- I thought that my participation in the Blue Sky program would make renewable energy more affordable over the long term. If that is true, why did the price increase?
-
Over the long term, investment in renewable energy has and should continue to result in technological advances that result in reduced cost and/or greater efficiencies. Your support of renewable energy through the Blue Sky program helps further that goal. However, a variety of market factors are currently driving prices upward even as the technology becomes more cost effective. See the answer to “Why did the price of Blue Sky Usage and Habitat increase?”
- How do I know I’m getting what I pay for?
-
The Blue Sky program is Green-e Energy certified by the Center for Resource Solutions, an independent non-profit and the leading certifier of renewable energy. Each year the Blue Sky program undergoes an audit to verify that we purchased the right amount of renewable energy certificates for our Blue Sky customers. Learn more about Green-e Energy certification »
In addition, all renewable energy certificates (REC) purchased on your behalf are accounted for in the regional tracking system where they are generated, such as the Western Renewable Energy Generation Information System (WREGIS). Much like an online bank account, a tracking system issues a uniquely numbered certificate for each megawatt-hour (mwh) of electricity generated by a facility registered in the system, tracks the ownership of certificates as they are traded, and retires the certificates once they are used or claims are made based on their attributes or characteristics. Because each mwh has a unique identification number and can only be in one owner’s account at any time, you can be sure you get what you pay for.
Resource location FAQs
- I read that the Blue Sky program may begin supporting renewable energy from facilities outside the Western region. Is this true?
-
Yes. In order to keep the price reasonable your Blue Sky purchase may support some wind facilities outside the Western region, but still in the United States, west of the Mississippi.
The majority of renewable energy supported will still come from the Western region and we’ll make every effort to support local and regional renewable energy sources first.
- Will I continue to support the same blend of renewable energy resources in 2010?
-
In order to maintain price stability, Pacific Power will allow greater flexibility in the types of resources that can be used for the Blue Sky Usage and Habitat programs. Previously these programs supported only wind (at least 61 percent), biomass (up to 38 percent) and solar energy(1 percent).
Because more renewable energy in the Western region is generated from geothermal facilities than solar facilities, the program will support geothermal resources in 2010 and little, if any, solar.
At this time we anticipate that the Blue Sky Usage & Habitat options will support 100 percent renewable energy: a blend of on average 79 percent wind; 17 percent biomass and 4 percent geothermal. Customers who participate will support, to the greatest extent possible, Western region generated sources, but could include up to 30 percent wind resources from outside of the western region in 2010.
- Will supporting facilities outside the Western region reduce the impact of my Blue Sky participation?
-
Your participation in Blue Sky will continue to support renewable energy, which creates benefits no matter where it is produced. The primary environmental attribute of renewable energy generation is avoided carbon dioxide emissions — this is a benefit that has a global impact, so regardless of whether a wind farm is in Oregon, Wyoming or Missouri, it still makes a big difference.
The majority of the renewable energy supported by Blue Sky program will continue to be generated in the Western region — so your purchase will still have an impact on our regional area as well.
- Did Pacific Power take customer opinion into consideration?
-
Yes. Pacific Power invited 5,000 Blue Sky customers to participate in a survey in September, 2009. The results of this survey were very clear — program affordability was consistently ranked higher than the locality of the renewable resources and the vast majority of respondents said they would prefer to support some renewable energy sources outside the Western region in order to control the price.
- How can I learn more about what facilities are supported and where they are located?
-
In 2010, we expect to provide a blend of wind, geothermal and low-emissions biomass and we expect between 70 percent and 100 percent to come from the Western region; 0 percent to 30 percent may come from wind facilities outside the Western region, but still west of the Mississippi. You can always find information about what we expect to provide for the current year (PDF); this information will be updated for 2010 no later than January 1, 2010.
See a list of facilities that Blue Sky has supported over the previous three year period »
- Is there another Blue Sky option that only supports renewable energy facilities in the Western region?
-
Yes. The Blue Sky Block option still exclusively supports renewable energy facilities in the Western region. Sold in 100 kilowatt-hour increments, Blue Sky blocks cost $1.95 each, which is $.0195 per kilowatt hour compared to the cost of the Blue Sky Usage or Habitat options of $0.0120 per kilowatt hour.
- What is Pacific Power doing to bring more renewable energy to the region?
-
In addition to Blue Sky customer purchases, Pacific Power is actively increasing our cost-effective renewable energy generation portfolio. Pacific Power’s goal is to increase our renewable energy generation portfolio to 2,000 megawatts of new renewable resource by 2013. That’s enough energy to power more than 560,000 homes! We offer you a choice to participate in the Blue Sky program because by teaming up we can do even more.
