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Commission moves to let KMEA manage and sell banked WAPA RECs
Summary
The commission voted to recommend the City Council authorize the city administrator to sign a KMEA REC-management form that would sell roughly 25,820 banked WAPA RECs (estimated value about $3,580) and allow KMEA to manage future WAPA hydro RECs on the city’s behalf.
The Gardner City Utility Advisory Commission voted March 5 to recommend that the City Council authorize the city administrator to sign a KMEA Renewable Energy Credit (REC) management form, allowing KMEA to sell the city’s banked WAPA hydro RECs and manage future REC sales.
Staff told the commission the city has accumulated roughly 25,820 banked WAPA RECs worth about $3,580 and that KMEA would bundle the city’s credits with other members to seek better market offers. “We have accumulated about $3,580 worth of RECs,” the staff member said.
Commissioners asked how transaction and registry fees affect proceeds and whether the credits expire if unsold. Staff said registry or transaction fees are currently shown at about 3¢ and confirmed RECs can expire if not sold; KMEA will decide timing and market placement. Staff explained KMEA can package many communities’ RECs to access larger buyers and markets rather than selling individual small lots.
A commissioner characterized carbon-credit-style markets skeptically, saying, “It’s just a scam.” The staff member responded by explaining how credits are used by some companies to offset emissions and that the local proceeds would be returned as a credit against wholesale power costs rather than general-fund revenue.
Committee member (S5) moved to recommend the city administrator be authorized to sign the KMEA REC management form; Committee member (S2) seconded. The chair called a voice vote and announced the motion carries. Staff said the recommendation will be forwarded to the City Council for final approval.
Staff noted market values and fees fluctuate and that proceeds are modest relative to overall power costs; the staff member characterized the revenue as a small credit to wholesale power expense rather than a substantial budget item.
