RMLD Board Votes to Sell Portion of REC's
RMLD will sell 40 percent of their RECs and retire 60 percent.
The following was submitted by RMLD:
At its May 30 Board meeting, the Reading Municipal Light Department's (RMLD) Board of Commissioners voted to retire 60 percent and sell 40 percent of the Renewable Energy Certificates (RECs) from the output of the Swift River Hydroelectric facilities they have entitlement to in Massachusetts. The RMLD has been discussing the issue of the disposition of these RECs for the last six months.
RECs certify that energy is produced by a renewable energy generator (wind, solar, water, bio mass, etc.) and can be retired or sold by their owner. Subject to a Renewable Portfolio Standard (RPS) under Massachusetts Law, Investor Owned Utilities (IOUs) such as NSTAR, National Grid and Western Massachusetts Electric are required to purchase or acquire RECs as a percentage of their annual energy sales. The RPS does not apply to municipal utilities, therefore, the RMLD can sell their RECs to the REC market or choose to retire them.
As a result of the RMLD Board vote to sell 40 percent of the RECs, RMLD could receive an estimated return in excess of $300,000. This estimate depends on the REC market, which fluctuates daily. The other 60 percent of the RECs being retired represent about 1.6 percent of the RMLD's annual energy sales.
Chairman of the RMLD Board of Commissioners Philip Pacino, said, "I am pleased with the RMLD Board's decision to both sell a portion of the RECs and retire the remainder of the RECs. This vote gives the RMLD Board more time to create a Renewable Energy Policy that will guide the RMLD in future purchases of renewable energy."
Pacino added, “The Commission also voted to continue discussion on a Renewable Energy Policy that will cover all aspects from how much renewable energy should be in the power portfolio to what to do about the RECs.”
RMLD General Manager Vinnie Cameron said, "I think the action of the RMLD Board shows our customers that we are sensitive to their financial interests and also to the environmental responsibility we have as an electric utility."
Cameron went on to say, "I believe commentary from elected officials within the service territory regarding the REC issue, helped guide us in this direction.”