• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Tioga Energy Releases Report Demonstrating Value of Solar Energy As Hedge Against Future Utility Rate Volatility

Posted on: Wednesday, 21 May 2008, 09:01 CDT

SAN MATEO, Calif., May 21 /PRNewswire/ -- Today Tioga Energy released a report that makes a case for solar energy as a cost saving hedge against future increases in electric utility rates. The report, titled "Hedging Against Utility Rate Fluctuations with a Solar PPA" details the rise in energy rates in California since 1970, and gauges the potential for rate increases in the years to come. The volatility and escalation witnessed to date, coupled with the challenges California-based businesses and organizations face, illustrate the need for businesses to consider managing their electricity price risk through a solar power purchase agreement. Tioga Energy has made the full report available for download at http://www.tiogaenergy.com/.

Relying on data collected from the Energy Information Administration and an analysis by the California Public Utilities Commission, the Tioga Energy report reviews California rate increases from 1970 to the present, analyzes the likelihood of future utility electricity price increases, and then compares the forecasted electric utility rate increases with the fixed rates of a solar power purchase agreement (PPA). The findings demonstrate a compelling argument for businesses to adopt solar energy for its positive impact as a financial hedge.

The study found that California rates have risen steadily from 1970 to 2004, with compound annual growth rates (CAGR) in the range of 7%, depending on customer and utility segments. Further analysis shows that a range of complex factors will have significant impact on future utility rates, including increased reliance on natural gas; a high probability of additional operating costs associated with carbon emissions cap-and-trade legislation; and increased costs and time required for new power plant and transmission development.

Leveraging proven statistical modeling methodologies outlined in the paper, the report illustrates the probability of electric utility rate increases in the future, and how solar PPAs provide strong protection against the risks of those increases. Tioga's solar savings model -- which is used with customers and partners to forecast probable solar savings under various scenarios -- shows that:

* Typical solar PPAs offer a very high probability of significant savings over future electric utility rates, * Even Solar PPAs with an initial price substantially higher than current electric utility rates can be more likely than not to generate a net savings over time.

Tioga's solar savings model demonstrates that the fixed rates of a solar PPA offer strong protection against the risk of electric utility rate increases. The paper demonstrates a solar energy PPA's validity as a sound financial choice to guard against the probable electric utility rate increases caused by rising utility fuel and construction costs and environmental regulation associated with global climate change.

About Tioga Energy:

Tioga Energy enables commercial, government and non-profit organizations to reduce their energy costs while lowering carbon emissions. Through Tioga's SurePath(SM) solar power purchase agreement (PPA), Tioga Energy owns and operates renewable energy systems that provide organizations a hedge against energy price volatility and accelerate their access to clean energy without any capital outlay. For more information call 877.333.9787 or visit: http://www.tiogaenergy.com/

Available Topic Expert(s): For information on the listed expert(s), click appropriate link. PAUL DETERING http://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=77028

Tioga Energy

CONTACT: Jessica Appelgren of Blue Practice, +1-415-871-1662,jappelgren@bluepractice.com, for Tioga Energy

Web site: http://www.tiogaenergy.com/

Source: PRNewswire

More News in this Category