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With the large number of questions we are receiving concerning
our wind power project, we cannot answer all of them individually. We
hope that these answers will provide answers to the most frequently asked
questions. If your question is not answered here, please e-mail questions@PortsmouthRIenergy.com
and we will contact you directly or post an answer here.
Questions are grouped in several categories for your convenience.
LAWS and REGULATIONS
Q-L-1 - What are Renewable
Energy Certificates (RECs)?
A-L-1 - RECs are vouchers that people who use a renewable
energy resource accumulate based on the amount of energy they generate
from renewable energy sources. These RECs are a traded as a commodity
just like dollars. Energy suppliers (or large users) have goals to use
more renewable energy sources. Instead of building renewable energy sources
themselves, they can help meet their goals by “buying” RECs.
Renewable energy producers can sell these RECs to further offset the cost
of their energy production. Portsmouth will receive value for any and
all REC’s generated by the turbine(s).
Q-L-2 - Why do we need a referendum ballot for the turbine project?
A-L-2 - We really don’t need one. The Town has the authority borrow the money for the turbine
construction without taking the measure to the ballot box. However, we thought that,
even though not required, it would be prudent to get the consensus of the voters
before moving on with project construction. This required a lot more work for the
Town and the PEDC in that we needed to draft legislation and testify at hearings
at the Statehouse to get the authority for a referendum that had funding attached.
The hearing process is complete and the Bills (Senate Bill S0260 and House Bill H5217)
have become law. See the
RI Assembly Bill Status Page
for the latest and to see copies of the legislation. We expect the Town to place the
referendum on a ballot (probably in November 2007) after the Town Council reviews our feasibilty study
and approves the project and in conjunction with several other Town referendum items.
Q-L-3 - I don’t understand this thing called “Distributed Generation”
and selling electricity back to the power company.
A-L-3 - Power regulations
are complicated, so we’ve provided a primer to try to make it simple for you to understand.
Please go to the POWER SUPPLY CONUNDRUM for the explanation. The RI Assembly passed
a distributed generation bill un June 2007. It became law on July 2, 2007
without the Governor's signature. Because of last minute language changes in the bill, we are
trying to determine, exactly, how the newly enacted legislation will affect our project. The short answer
is that it will definitly help the economic model. We are working the actual numbers to see
exactly how much it will help us.
Q-L-4 - I understand that there were several bills in the 2007 RI assembly that will directly affect Portsmouth.
Can you give me some details?
A-L-4 - Two bills that recently went through the RI assembly affect the Portsmouth Wind Project -
both favorably. H5217 and S206 were made law in June (see Q-L-2 above) and the associated
referendum was approved by the voters on November 6, 2007. The second became law without the Governor's
signature on July 2. This one (H5566) helps, in part, the distributed generation power regulations in Portsmouth's favor
(see Q-L-3 above). Although the final bill got "watered down" by pressure from power company lobbyists, it does allow
for a better "net metering" plan to provide municipal wind projects (like Portsmouth's) a better return on the
excess power they put back onto the electrical grid. the bill is complicated and we are working the details
and will have the new law folded into our economic model for our project.