RMLD Sells RECs for $344,470
Light Department sells Class 1 Connecticut Renewable Energy Certificates (RECs), which represent 7,030 MWh of renewable-energy-generated electricity.
Submitted by the Reading Municipal Light Department.
Reading Municipal Light Department (RMLD) General Manager Vinnie Cameron reported that on June 1, RMLD sold $344,470 worth of Class 1 Connecticut Renewable Energy Certificates (RECs), representing 7,030 MWh of renewable-energy-generated electricity, as instructed by the RMLD Board of Commissioners at its May 30 board meeting.
After paying a 1% broker commission, RMLD will receive $341,025 from EDF (Electricite De France) Trading. The sale was done at the direction of the RMLD Board of Commissioners, who voted 3-1-1 to sell 40% of the RECs and retire the remaining 60%. The retired RECs have an estimated worth of less than $3,000.
RMLD Board Chairman Phil Pacino stated, “I am pleased to see that the real value of the sold RECs exceeded what the estimated value was. The value received goes into the fuel charge fund and will benefit all the RMLD ratepayers. I further look forward to the next step in this process - to develop a renewable energy policy that will give RMLD direction with respect to the amount of renewable energy in the RMLD’s power supply portfolio and how to handle the RECs.”
Cameron said, “These actions represent the culmination of several months of discussion by the RMLD Board of Commissioners and Citizens Advisory Board on the optimal treatment of RECs to benefit ratepayers and at the same time respect environmental concerns.“
Mr White
3:59 pm on Wednesday, June 6, 2012
Anyone want to take a shot at explaining how, if 40% of something is worth $344,470, 60% is worth less than $3,000????
I know it's been a while since I've been in school but is this that "New Math" I kept hearing about??
If someone can shed some "light" on this it'd be appreciated.
Fred Van Magness Sr.
5:24 pm on Wednesday, June 6, 2012
As I understand it, 40% of the total expiring REC's were worth $344,000. 60% of the quantity expiring were worth less than $3000. The percents have to do with the quantity of REC's being sold. Obviously some REC"s are more valuable than others, depending on market conditions and the original source of the REC....ie: wind vs. solar vs. biomass, etc. The market values some sources of REC's substantially higher than others. So if they let expire a large quantity of REC's that came from a source that the market doesn't value highly, then you would see numbers such as the 60% with little value.
Joe Donahoe
4:58 pm on Wednesday, June 6, 2012
I understand one RMLD Commissioner resigned after the vote. Why?
Karl Weld
7:58 pm on Wednesday, June 6, 2012
http://homenewshere.com/daily_times_chronicle/news/reading/article_8d48218e-af29-11e1-92a0-0019bb2963f4.html
The following is the text of a letter to the community and supporters sent in today by O’Neill:
“Dear Voters,
I am sorry to disappoint the many people who voted for me in the March local election with my recent resignation from the RMLD Board of Commissioners.
While I wish in hindsight that I had acted a bit more slowly and more graciously, I feel that it was a good decision for my family and for me.
Some recent events have created a great deal of personal strain. Since the end of April I’ve known that it was becoming increasingly difficult to give my full attention and energy to all of my activities. My responsibilities to my family, for the time being, must come first.
Without a doubt, the decision of the RMLD Board to sell close to 100% of the value of the RECs was painful to me, but it was not the deciding factor."