1. 1 Orcas Power & Light Cooperative Ambassadors Legislative Kick-off Meetings October 7 & 8, 2010

2. Washington’s Electric Cooperatives Our Energy, Our Future: A Dialogue with America Mobilizing co-op consumers to ask their elected representatives tough questions about the future of energy.

3. Washington’s Electric Cooperatives Join the Campaign: www.ourenergy.coop

4. 4 What are we talking about? Cap and Trade/Carbon Tax Conservation/Energy Efficiency Renewable Energy Standard/RPS Net Metering Feed-in Tariffs/Standard Offer Contracts On-bill Financing

5. 5 Cap and Trade/Carbon Tax Not the same but have same goal: –Placing a cost on carbon dioxide (CO2) emissions Cap and Trade –Establishes limits on CO2 emissions –Permits issued for the allowed emissions (allowances) –Allowances can be “traded” if surplus or needed

6. 6 Cap and Trade/Carbon Tax Cap and Trade (continued) –Current proposals have serious flaws in the proposed “trading” schemes Carbon Tax –More transparent –More effective in influencing behavior –Determining appropriate level is difficult –Politically it is DOA

7. 7 Conservation/Energy Efficiency Not the same thing –Conservation – Not using or reduced usage –Energy Efficiency – Smarter usage Washington State –Conservation requirements (RPS) –EE requirements on targeted items Federal –Proposals for energy efficiency requirements

8. 8 Renewable Energy Standard/ Renewable Portfolio Standard Enacted in over half of the states Federal proposals but no law yet Inconsistencies are rampant –Different definitions of “renewable” –Different levels of requirements –Different eligibility requirements Requirements exceed availability

9. 9 Net Metering Accounting for electricity generated on the retail customer’s side of the meter Retail customer gets credit for excess electricity –Excess electricity is “banked” for future bill credit Payments are tricky because of federal jurisdiction over wholesale power purchases

10. 10 Feed-in Tariffs/ Standard Offer Contracts No federal – only states enactment Jurisdictional issues – wholesale pricing Legislates “winners” and “losers” among production technologies Puts “business risk” on retail customers without any share of potential profits No regulatory oversight – retail customers at the mercy of generators

11. 11 On-bill Financing Provides funds for up-front investments in conservation and energy efficiency Great idea if done correctly –Restricted to residential and small commercial –Identified and quantified savings for retail customer –Specific “pay-back” periods –Appropriate risk assignments

12. 12 That’s what are we talking about! Cap and Trade/Carbon Tax Conservation/Energy Efficiency Renewable Energy Standard/RPS Net Metering Feed-in Tariffs/Standard Offer Contracts On-Bill Financing

13. 13 Information Orcas Power & Light Cooperative –www.opalco.com Washington Rural Electric Cooperative Association (WRECA) –www.wreca.coop National Rural Electric Cooperative Association (NRECA) –www.nreca.coop –www.ourenergy.coop

14. 14 PO Box 7219 Olympia, WA 98507 360.357.6048