Carbon Offset Program Frequently Asked Questions

A REC represents the environmental and non-power attributes of renewable electricity generation and is a component of all renewable electricity products. RECs are measured in single megawatt-hour increments and are created at the point of electric generation. 

The majority of RPU’s RECs are from the Lake Zumbro Hydro Plant and the Valleyhigh Solar Installation. However, any of the following sources meet the State’s requirements: biofuels, biomass, fuel cells, hydro, wind, landfill gas, municipal waste, photovoltaic, and solar thermal electric. 

RPU utilizes the Midwest Renewable Energy Tracking System (M-RETS) to track renewable energy credits. Illinois, Iowa, Manitoba, Minnesota, Montana, North Dakota, South Dakota, and Wisconsin currently use M-RETS. RPU tracks RECs through M-RETS to meet the Minnesota State Renewable Energy Standard as mandated by the RPU Board. 

Minnesota § 216B.1691 mandates electric utilities generate 25% of load from renewable sources by 2025 with increasing levels of carbon-free energy reaching 100% in 2040. The state charged the Public Utilities Commission with setting up the mechanisms (tracking, allowable resources, life of credits, and retirement schedules). 

RPU purchases the majority of its energy from Southern Minnesota Municipal Power Agency (SMMPA), which includes renewable energy at the level set by the Minnesota Renewable Standard. The RECs produced by RPU’s Lake Zumbro Hydro Plant and the Valleyhigh Solar Installation exceed what RPU needs to meet the renewable requirements and goals, leaving RECs available for RPU customers. 

RECs are the renewable attribute associated with a megawatt-hour of electricity. The cost of producing power with renewables is more than that of traditional fossil fuels. The REC is a means to place value on the social benefits of the generation source. By purchasing a REC, the holder can claim that their energy is offset by a green generation source. 

The only way is if the user is 100% off of the electric grid and all of its energy is produced onsite with renewable sources. Anyone connected to the grid is theoretically connected to every generator online at any given time. Most everyone making renewable claims are utilizing offsets. This gives everyone an equal chance to participate in renewable energy.