However, it was clear this morning that we made an impact on the PURB (the board that is advising City Council on the El Paso Electric Rate Case). It was clear that they had not thought about using the Rate Case (El Paso Electric is asking for permission to raise rates) to negotiate better incentives for solar energy. PURB member Moises Rodriguez asked City lawyer Norman Gordon if it was within the PURB's rights to explores renewable energy incentives.
Hopefully, we planted a seed. (The EPE lawyers certainly were taking furious notes!)
The next step is the May 10 meeting, then the PURB makes its recommendations to City Council (no date set yet), then El Paso Electric goes to the Public Utility Board in Austin in June 1. If you want to get involved, please contact Joe Moody's office and say you want to sign the Rate Case letter (letter is after the break).
March 25, 2010
El Paso City Council
City of El Paso
2 Civic Center Plaza
El Paso, Texas 79901
Honorable City Representatives,
As a group of El Paso builders, business owners and environmentalists who are deeply committed to the future of our great city, we would like to ask for your leadership in developing the renewable energy industry in El Paso. More specifically, we feel that as the city’s representatives in the El Paso Electric Rate Case, you have a unique opportunity to negotiate much-needed incentives with the utility company. Incentives are what drive successful solar markets from Germany to California, and Austin to Las Cruces. Sadly, El Paso doesn’t enjoy any of the incentives that could put solar panels on every rooftop and transform us from the “Sun City” into the “Sun Capital of the Southwest.”
In the past, El Paso lost out on many energy booms. We have no coal; we have no oil and not enough wind. But we sure have a lot of sun and with the recent growth of the solar industry, we suddenly find ourselves at the forefront of the energy trend of the future. This isn’t just an opportunity for a cleaner environment. It is also the chance to embrace the industry of the future, one with large capital investments, high paying jobs, and educational opportunities. How do we realize this vision? Quite simply, we need more homeowners to take the leap and install photovoltaic (PV) panels on their rooftops. They would create the consumer demand that would create a viable market for private investment. It is not impossible to think that one day, we’ll be designing, manufacturing and installing PV panels, and even providing clean energy to the entire region. The problem is that the cost of the technology is still high. Homeowners are facing an initial expense of $20,000 to $50,000.
We need to lower this price barrier with incentives. Solar incentives come in two packages –upfront incentives (in Austin, homeowners saw costs go from $35,000 to $15,000 thanks mostly to upfront rebates) and incentives spread out over several years, in what are called Renewable Energy Credits, or REC, payment. With REC payments, the utility pays homeowners for every Kilowatt-hour (kWh) they generate, at an attractive rate locked in for several years. REC payments are common practice in Albuquerque, Carlsbad and even in Las Cruces. Yes, this is right. El Paso Electric offers incentives in Las Cruces, but not in El Paso. Thanks to these incentives, Las Cruces is enjoying a boom in the solar industry of the future, while El Paso is once again falling behind. Meanwhile, El Paso Electric is launching a pilot for an upfront rebate in El Paso this year but the company is only funding it with $141,300, just enough for 18 or 19 homes. By comparison, Austin dedicated $4 million to its upfront rebate, and San Antonio, $2.5 million. We need to demand better incentives from El Paso Electric in El Paso and claim our place in the sun.
The El Paso Electric Rate Case is the time to do so. El Paso Electric will soon come before you asking to raise residential rates. During these hearings, you have the right to negotiate with El Paso Electric, as per the city’s contractual relationship with the company. We urge you to ask El Paso Electric to set up the following incentives, which already exist elsewhere and have been proven to stimulate demand.
- An upfront rebate on the installation of PV systems and/or any other renewable energy system, such as, but not limited to, wind turbines. The rebate should be $2.50 per watt and the program budget should be at least $2.5 million per year for residential. This would mean a $7,500 rebate for a 3kW system, which is the average size in El Paso. El Paso Electric launched the El Paso Solar Photovoltaic (PV) Pilot Program this year that offers a rebate of $2.50 per watt, up to $25,000, but the company is only dedicating $141,300 to fund it this year and another $141,300 next year, which only amounts to 18 to 19 homes at 3kW per year.
- A 13-cent per kW/h Renewable Energy Credit (REC) payments. El Paso Electric pays its New Mexico solar homeowners 12 cents for each kilowatt/hour of solar electricity they generate. But in El Paso, El Paso Electric does not currently pay any RECs. This means that New Mexico homeowners can recoup their investment in 8 or 9 years, while El Paso homeowners would have to wait 14 to 19 years. This difference gives New Mexicans an unfair advantage and Las Cruces a chance to beat us at becoming the “Sun Capital of the Southwest.”
If we miss the window of opportunity that is the Rate Case, we may have to live with the El Paso Electric’ sub-par incentives for another decade and watch other cities, as close as Las Cruces, pass us by. Going solar is in the best interest of El Paso homeowners, its businesses and its workers. We pray that you’ll agree that it is time to act and we assure you that we stand behind you, ready to help.
Sincerely,
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