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July 1, 2020
As of July 1, members of the Mountain Parks Electric (MPE) cooperative have a new, affordable way to finance beneficial electrification upgrades and other energy improvements. MPE’s “Electrify Everything” program, which EESI provided guidance for, allows its members to use an on-bill tariff model to fund four types of projects: air-source heat pumps, commercial electric vehicle (EV) charging stations, insulation upgrades, and solar array installations.
Mountain Parks Electric, Inc., was founded in 1946 to provide electricity to the rural communities of North Park, Colorado. Today, MPE serves an area of about 4,000 square miles, encompassing a large portion of North Central Colorado, including all of Grand and Jackson Counties and parts of Larimer, Routt, and Summit counties. The service territory includes the majority of Rocky Mountain National Park.
By using an on-bill tariff model, MPE’s Electrify Everything program allows qualifying members to pay off the cost of an energy investment over the span of several years, rather than paying the full cost up-front. These monthly payments are included as a line item on the participant’s utility bill.
Mark Johnston, the General Manager of MPE, says that the new program was designed with the co-op’s members in mind. “Co-ops are democracy in action,” Johnston said. “We wanted to make sure that all of our consumer-members have the ability to make energy investments that will generate long-term savings.”
Program Details
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Participants in Electrify Everything have up to ten years to reimburse MPE for their investment, during which time participants with solar investments pay a two percent interest rate, and all others pay only one percent. The repayment obligation is tied to the meter, rather than the person, so that the obligation can be transferred to the next owner of the structure if the original participant decides to move. MPE will determine whether an applicant is eligible based on their bill payment history and the projected energy savings from the proposed project.
While Mountain Parks Electric expects the solar installation to be the most popular program option, they also stress how beneficial the insulation and air-source heat pump can be in Colorado’s cold climate. All of these measures help home and business owners save energy and money on their utility bills, as well as make members more comfortable in their homes and businesses. Switching from fossil-use to electric end-use equipment can save Coloradans $528 per heating customer, and $611 per vehicle annually through 2040. Furthermore, air-source heat pump upgrades and solar installations can help reduce MPE members’ reliance on fossil fuels by transitioning them towards renewable energy-powered electricity.
The program can also provide financial assistance to businesses that want to install electric vehicle (EV) charging stations in their parking lots. Currently, there are 67 EVs registered in Grand and Jackson counties. MPE hopes that, as businesses install EV charging stations through Electrify Everything, this number will continue to grow. The program will support Colorado’s EV plan, which aims to develop the state’s EV charging grid and has set a goal of having nearly 40 times the current number of electric vehicles in Colorado by 2030.
To finance the Electrify Everything program, MPE received a $10 million Rural Energy Savings Program (RESP) loan from the U.S. Department of Agriculture. Through RESP, rural utilities can receive a zero percent interest loan to finance cost-effective energy efficiency, beneficial electrification, and renewable energy improvements for participating members. This loan allows MPE to charge very low-interest rates, but still have enough capital to cover administrative costs and any possible defaults—although similar on-bill programs historically have low default rates.
EESI’s Contribution
Over the past year, EESI has had conversations with MPE’s leadership as they designed their Electrify Everything program. Most significantly, EESI connected MPE with Orcas Power and Light Cooperative (OPALCO), a co-op in Washington state. EESI helped design and launch OPALCO’s “Switch It Up!” on-bill program, and the staff at OPALCO were able to provide MPE with the documents, expertise, and experience needed to establish an on-bill program.
Author: Maia Crook
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