MEMORANDUM OF UNDERSTANDING (MOU) - Among Wisconsin Energy Corporation (the Company), RENEW Wisconsin (RENEW), and Wisconsin's Environmental Decade (Decade)
- The parties agree that, to the greatest extent practicable, energy sources marketed under the Company's Energy for Tomorrow program should be derived from new renewable resources in Wisconsin and Upper Michigan.[ 1 ] The parties also agree that resources meeting the above criteria (see footnote shall compose at least 75% by April 1, 2000, and shall not fall below this percentage while this agreement remains in effect. As applied to hydro, "new" can mean the refurbishment of abandoned units or the resumption of production at orphaned units.
- The parties agree that energy sold under the program should be derived from a portfolio of resources. Effective April 1, 2000, no one energy source, be it hydro, biomass or wind, should account for more than 75% of the capacity committed to this program.
- The parties agree that the Company can include in its program new renewable generation sources that will be a part of the Company's rate base. However, renewable generation sources currently in production and in the rate base are ineligible for inclusion with the exception of existing renewable facilities that would otherwise become orphaned and non-renewable facilities that are converted to use renewable fuels.
- The parties agree that Energy for Tomorrow should be structured so that commercial and industrial customers (including units of government) can purchase renewable electricity. The parties agree that a major marketing effort should be launched to engage their participation, which should include events to recognize in a public fashion their commitment to clean energy.
- The parties agree in principle that purchases through the Energy for Tomorrow program should not be subject to price increases due to increased costs of fuels and facilities not directly connected with Energy for Tomorrow. The parties recognize that adjustments to the premium may be needed to reflect changes in program costs and/or changes in the base rate. The parties agree to discuss anticipated adjustments in program costs, whether upward or downward, prior to a new rate filing for the program. While it is hoped that the parties can reach a consensus on any new premium, it may be necessary to request a hearing on prospective Energy for Tomorrow-related rate filings.
- The parties recognize that all Company customers are entitled to purchase some or all of their electricity from clean energy sources, and that the Company should strive to avoid lengthy waiting periods due to lack of available supply. The parties agree that no prospective subscriber should remain on a waiting list longer than 3 months for participating in the Energy for Tomorrow program.
- The parties recognize the value of an Advisory Committee composed of customers, representatives of environmental and energy organizations and program staff. This committee should meet at least three times a year. Travel and meal expenses associated with attending committee meetings should be covered by the Company.
- The parties agree that this MOU is applicable while the electric industry retains its current structure. The parties agree that these ground rules need to be revisited if industry restructuring becomes imminent.
- Decade and RENEW agree to publicly endorse the Energy for Tomorrow program and agree to actively assist in marketing the program by issuing news releases, participating in media interviews and soliciting participation from their membership through their newsletters and membership meetings. The parties agree to obtain each other's consent regarding the use of parties' names prior to creating informational and promotional materials relating to the program.
- Decade and RENEW agree not to intervene on issues relating to the program in future proceedings as long as the MOU is in effect.
- Decade and RENEW agree to withdraw the current legal challenge against the Public Service Commission relating to its approval of the program.
- If any party to the MOU violates any portion of the MOU, all parties have an opportunity to terminate their participation in the MOU. Parties must inform all other parties, in writing, of the violation they believe has occurred and agree to meet and attempt to resolve the dispute. If a resolution is not reached, parties may terminate their participation in the MOU by informing all other parties of their decision to discontinue participation in the MOU.
- In the event of termination of this MOU, the Company will remove all indications of endorsements by Decade and RENEW from all promotional and informational materials related to the program.
[ 1 ] A renewable energy generating source is defined as one which generates electricity using any of the following: (i) solar photovoltaic energy; (ii) windpower installations; (iii) fuel cells utilizing renewable fuels; (iv) landfill gas; (v) hydroelectric generators (defined as facilities of 30 MW or less and in compliance with federal and state regulations); and (vi) biomass generators using fuels such as wood, agricultural, or food wastes, energy crops, biogas, biodiesel, or organic refuse-derived fuel. Biomass generators do not include energy from incineration of tires; garbage; general household; institutional and commercial nonwood waste; industrial lunchroom or office waste; landscape waste; or chemically contaminated construction and demolition debris.