We Energies - Biogas Buy-Back Rate

Summary

We Energies, an investor-owned utility serving portions of Wisconsin and Michigan, offers to purchase electricity and associated renewable energy credits generated by anaerobic digesters owned by its Wisconsin customers. Anaerobic digesters may use animal waste from farm operations, waste from industrial food processes, or waste from municipal wastewater-treatment facilities.

Under a 15-year contract,* eligible customers will receive:

• $0.155 per kilowatt-hour (15.5¢/kWh) for electricity generated on-peak
• $0.0614 per kilowatt-hour (6.14¢/kWh) for electricity generated off-peak
• On-peak is defined as the period from 9 AM to 9 PM on Monday through Friday

The program is limited to systems up to 2 megawatt (MW) in capacity and has a total aggregate limit of 10 megawatts (MW). Systems larger than 2 MW may elect to negotiate a facility specific buy-back rate through a specially negotiated contract. The tariff was approved by the Public Service Commission of Wisconsin (PSC) in January 2006 and took effect shortly afterward. The tariff is scheduled to expire on December 31, 2011 or whenever the total aggregate capacity limit is reached.

Technical Qualifications
The customer is responsible for costs associated with the installation of a second meter to measure system output. While this is not a net metering arrangement, payments to the customer from the utility may be integrated into the customer's existing bill. During months where customer energy production exceeds consumption, a credit is applied to the customer's utility bill equal to the net excess dollars. The customer will receive a check whenever the credit exceeds $25. Participating customers must comply with applicable national, state and local electrical codes, rules and regulations; the electric service rules and regulations of We Energies; the requirements of Wisconsin Administrative Code Chapter PSC 119; the state's Distributed Generation Interconnection Agreement. Utility energy purchases made under this tariff include all renewable energy credits (RECs) and other environmental attributes associated with the electricity being purchased.

* Customers have the option of remaining on the tariff for up to 15 years. Participating customers with anaerobic digesters may opt out of a contract, but We Energies may not opt out.