Commission authorizes sale of renewable energy credits; proceeds to stay in electric fund

The Madison commission voted to authorize staff to sell accumulated renewable energy credits and to have Heartland Energy conduct negotiations on the city’s behalf. Mike, speaking for the city’s electric staff, said the credits are renewable attributes tied to energy purchased from WAPA and that their value declines as they age.

“So I guess what we’re asking is just, for the commission to recommend the approval of the sale and that, Heartland Energy to conduct negotiations on our behalf,” Mike said. He told commissioners historical credits from 2024 and 2025 carry less value than more recent credits and explained the sale would convert otherwise unused attributes into cash.

One commissioner disclosed a potential conflict of interest, saying they work at Heartland and would abstain from the vote. Commissioners then moved and seconded a motion to authorize the sale; the motion passed. Amy stated the proceeds from any sale will remain in the electric fund. “That stays in the electric fund,” Mike added.

The staff packet included a snapshot of current REC holdings and estimated values; Mike said Heartland manages the accounts and that Madison had not sold RECs previously because earlier contract language did not allow it. The authorization directs staff to proceed with negotiations and return with final terms as they are available.

The vote authorizes negotiation only; the final sale price will depend on market offers solicited by Heartland. The commission’s authorization does not commit the city to a specific buyer or price.