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Energy Neutral Vashon Island Guidance for Forming a Co-op

Janet Frisch Karin Landsberg Erica Prentice Jeff Rueckhaus May 23, 2007. Energy Neutral Vashon Island Guidance for Forming a Co-op. Vashon-Maury Island. Source: Windemere West Sound. Source: History Link. Institute for Environmental Research and Education (IERE).

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Energy Neutral Vashon Island Guidance for Forming a Co-op

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  1. Janet Frisch Karin Landsberg Erica Prentice Jeff Rueckhaus May 23, 2007 Energy Neutral Vashon IslandGuidance for Forming a Co-op

  2. Vashon-Maury Island Source: Windemere West Sound Source: History Link

  3. Institute for Environmental Research and Education (IERE) “Acquiring and helping others acquire the knowledge and skills they need for fact based decision making.” Rita Schenk, Executive Director

  4. What has IERE done so far in furthering the goal of an energy independent Vashon-Maury Island? • Energy conservation • Renewable power • 10 year energy independence • Public Utility District

  5. Purpose of our Project • IERE asked our team to prepare a “how-to” guide for the formation of a co-op. • 10 year energy independence • Energy conservation • Renewable energy generation

  6. What is a Co-op?

  7. Coop? or Co-op? ?

  8. A co-op is a business • Owned by members • Controlled by members • Benefit their members • Distribute profits to the members

  9. Consumer Co-op Producer Co-op Worker Co-op Purchasing or Shared Services Co-op Types of Co-ops

  10. Electricity Co-ops • History • Two types of Electricity Co-ops • 864 Consumer-owned distribution co-ops • 66 Generation and transmission co-ops

  11. Electricity Co-ops • Own 2.4 million miles or 43% of the nation’s distribution lines covering 75% of the nation’s landmass Source: NRECA

  12. Establishing and Operating a Co-op

  13. Establishing a Co-op • Organize around a common need • Study the feasibility • Develop a business plan • Establish key people and legal status • Secure funding and facilities

  14. Establishing a Co-op • Organize around a common need • Study the feasibility • Develop a business plan • Establish key people and legal status • Secure funding and facilities

  15. Establishing a Co-op • Organize around a common need • Study the feasibility • Develop a business plan • Establish key people and legal status • Secure funding and facilities

  16. Establishing a Co-op • Organize around a common need • Study the feasibility • Develop a business plan • Establish key people and legal status • Secure funding and facilities

  17. Establishing a Co-op • Organize around a common need • Study the feasibility • Develop a business plan • Establish key people and legal status • Secure funding and facilities

  18. Begin operations! Establishing a Co-op

  19. Managing and Operating a Co-op • Members • Owners, controllers, and users • Form the foundation of the co-op

  20. Managing and Operating a Co-op • Board of Directors • Elected from among and by the membership • Set strategic direction • Establish the policies • Provide oversight

  21. Managing and Operating a Co-op • Managers • Manage day-to-day operations • Promote and market the co-op • Accountable to the board

  22. Managing and Operating a Co-op

  23. Laws and More Laws

  24. Laws • Are co-ops incorporated under both federal and state laws? Yes / No?

  25. Laws • Are co-ops incorporated under both federal and state laws? Yes / No? No, just state law - RCW 23.86

  26. Laws • Can more than one utility provide electricity in the same area in the state of WA? Yes / No?

  27. Laws • Can more than one utility provide electricity in the same area in the state of WA? Yes / No? No - RCW 54.48

  28. Laws • How much can a co-op return to its members as dividend? • 2% • 8% • 12% • 50%

  29. Laws • How much can a co-op return to its members as dividend? • 2% • 8% • 12% • 50% 8% by RCW 23.86.160

  30. Laws • How many WA state laws did our team find to encourage renewable energy? • 1 • 2 • 5 • 25

  31. Laws • How many WA state laws did our team find to encourage renewable energy? • 1 • 2 • 5 • 25 2 - RCW 19.285 and RCW 80.52.080

  32. Laws • Do utility laws apply to the solar panels on my roof? Yes / No?

  33. Laws • Do utility laws apply to the solar panels on my roof? Yes / No? No - RCW 80.58.010

  34. Co-ops and “Green” Services

  35. Co-ops and Conservation • Co-ops address energy conservation in the following ways: • 92% Educate consumers about conservation • 77% Offer residential energy audits • 64% Offer commercial energy audits • 49% Offer financial incentives • 41% Offer weatherization services

  36. Co-ops and Renewable Energy • Orcas Power and Light Co-op • Providing electricity to people of the San Juan Islands since mid 1930’s • 16 renewable power projects connected to their grid

  37. Our Wind Co-op Used pre-sales of green tags to construct 10 small windmills Continued sales of renewable energy Cooperative Community Energy Retail Co-op Sales of renewable energy equipment below list price $ Co-ops and Renewable Energy Green Tags = property rights to the environmental benefits from renewable energy generation

  38. Parting Thoughts • Several examples of co-ops that provide conservation and/or renewable energy services • Follow the steps to form a co-op • Recognize risks • Engage in careful planning

  39. Thank You! • Our three instructors • Dave Tetta • Tim Trohimovich • Jim Shellooe • Rita Schenk and IERE

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