Ameren's 'green tariff' gets the green light, giving cities and large customers better access to renewable energy
By Bryce Gray
St. Louis Post-Dispatch 2 hrs ago
For cities, corporations and some citizens, renewable energy — wind, in particular — is increasingly in demand as costs drop.
In Missouri, though, it’s hard to come by. Eighty-one percent of the state’s electricity generation came from coal last year, according to the U.S. Energy Information Administration.
But linking that renewable demand with supply will become a little easier for municipalities and large commercial power users in Ameren’s service territory, after a new program from the St. Louis-based utility got the green light from state regulators last week.
The company’s Renewable Choice Program — an example of a “green tariff” — will allow customers that exceed a certain threshold of energy usage to essentially subscribe to receive up to 100 percent renewable energy. The measure was approved by the Missouri Public Service Commission last week.
Ameren first proposed the program in a filing made with the PSC in November. At the time, Ameren executives billed it as a natural follow-up to the company’s September 2017 announcement that it would invest $1 billion in new wind generation.
The program is now set to begin in the coming months, when large industrial customers and municipalities will have a window of time to express interest in obtaining renewable power through nonbinding agreements. After that step, Ameren will then identify sources able to meet the demand and report back to prospective customers with a price. Those entities will then decide whether or not to proceed with the deal.
After securing commitments from customers, Ameren is authorized to acquire up to 400 megawatts of renewable generation — 200 of which it can own, and another 200 available through power purchase agreements.
Those sources of renewable generation have not been built yet and are likely to be wind turbines. An Ameren representative said it has not been determined whether they would be in Missouri or elsewhere.
To procure any additional renewable energy to support the program, Ameren would be required to obtain separate regulatory approval as needed.
The move was hailed by renewable energy advocates in the state, particularly for its economic appeal to certain businesses.
“Make no mistake that this is a huge win for customers,” said James Owen, executive of Renew Missouri, an organization that pushes for increased adoption of renewable energy, in a statement. “Companies like (Anheuser-Busch InBev) and General Motors have aggressive and comprehensive sustainable energy goals. This gives them the ability to work with their utility to make this happen.”
Last year, the St. Louis Board of Aldermen passed a resolution for the city to use 100 percent clean energy by 2035. Prominent local employers, such as Anheuser-Busch InBev, have recently made similar commitments.
Owen said in a phone interview with the Post-Dispatch that, ultimately, he wants residential customers to be given the same access and is hopeful that could emerge through community solar programs or other means.
“We’d like to see this expanded so everybody can have this choice,” he said.
