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SALT LAKE CITY — The largest electric utility is launching a new sustainable energy program aimed at meeting the growing demand for alternative sources of power.
Rocky Mountain Power announced Friday that the Utah Public Service Commission has approved a pilot program that allows customers to sign up to receive some or all of their electricity from solar power. The utility had sought approval from the state in June to launch the new subscriber solar program, which would give customers the choice to get their electricity from a planned solar generation facility to be located in central or southern Utah, said Gary Hoogeveen, senior vice president and chief commercial officer for Rocky Mountain Power.
The utility is in final negotiations with a developer to build a 20-megawatt solar farm, which is scheduled to be completed and operational by late 2016, Hoogeveen said.
Participating customers will be able to subscribe in 200-kilowatt hour blocks up to their total usage. The facility will provide a total of 20,000 blocks. If demand exceeds the initial production estimates, then another phase could be developed, he said.
"The average home uses 750-800 kilowatts hours (monthly), so if they bought four blocks, they could essentially use solar power for their entire home," he said.
Residential customers will receive a "locked-in" generation rate of 7.7 cents per kilowatt hour, plus about 4 cents for transmission and distribution, totaling 11.7 cents per kilowatt hour, Hoogeveen noted. A typical Utah customer would pay an additional $1.26 each month on average for one solar block. Individual costs or savings would vary depending on customer electricity usage.
High-volume energy users in the summer stand to receive the greatest benefit and might actually pay less money for their power because electricity costs are as high as 14.5 cents per kilowatt hour, he said. The program has also been set up so that only enrolled customers would have access to the solar energy that is generated.
"The only people paying for this solar array are the subscribers," he added.
The subscriber solar program is a great alternative for people who are renting, cannot afford solar panels, have homes that are not suited for rooftop solar, are restricted due to homeowner assoiciation rules or simply don't want rooftop solar systems, said Rocky Mountain Power President and CEO Cindy Crane.
Participants will not have to pay upfront costs, make long-term commitments or deal with the ongoing maintenance of installed solar panels, she said.
"Our customers want solar choices and we believe that this program gives them a better, more economic choice than rooftop solar," she said. "We're taking advantage of (economies of) scale at a more economical level for customers."
Salt Lake City has announced its intention to subscribe to a sizable amount of solar power for its municipal operations to lock in the energy portion of the city's bills for up to 20 years.
The city supports the new program and its efforts to expand renewable energy options for local residents, said sustainability director Vicki Bennett.
"(The) subscriber solar (program) offers a choice for residents and business owners who are unable to install solar, but still desire a direct connection to clean energy sources," she said. "We believe this program can be a major catalyst for ongoing transitions to renewable energy in Utah."
When the program comes online, it will be available on a first-come, first-served basis to residential, commercial and industrial customers. Subscribers would have to make a three-year commitment. A termination fee would be charged if they cancel their subscription before the three-year period.
Rocky Mountain Power serves 835,232 customers in Utah — with residential customers representing 89 percent of users, commercial customers representing 10 percent and industrial consumers at 1 percent. Data from the utility also showed that industrial customers use 37 percent of the utility's energy production, with commercial customers using 34 percent and residential customers using 29 percent.
