Detroit Edison GreenCurrents Enrollments Remain Tepid

Enrollments at Detroit Edison's GreenCurrents optional REC program for default service customers continued at a tepid pace in 2010, the utility reported to the PSC (U-14569).

While the 3,230 new enrollments in 2010 were higher than the 2,826 new enrollments in 2009, the enrollments are still less than half of the 8,591 enrollments recorded in 2008.

At year-end 2010, Detroit Edison had 21,469 enrolled participants in the GreenCurrents program, of which 20,275 were billed in 2010. The breakdown of those billed were 20,150 residential, 100 commercial, and 25 industrial.

Participants in 2010 caused Detroit Edison to use 57,493 MWh in RECs. In 2010, Detroit Edison purchased 35,239.8 RECs for the program, representing Michigan wind and biomass, at a weighted average price of $14.37/REC (with previously purchased RECs also used to serve customers).

In 2010, the revenue recorded by Detroit Edison for the GreenCurrents program was $1,269,470. For 2010 the RECs cost of goods sold was $808,932, reflecting the consumption of 57,493 RECs withdrawn from inventory using the First In, First Out method.

Program expenses during 2010 totaled $369,831. Detroit Edison promoted GreenCurrents during 2010 primarily through public events, direct mail, and web-based options. Two direct response channels were used to solicit program enrollments: bill inserts and a business reply flap on return envelopes. Public events accounted for approximately 55%, direct mail 43%, and direct customer web-based enrollment 1% of total enrollments

Expenses for direct mail, bill inserts, and bangtails were $159,000 in 2010, versus $77,000 a year ago. Expenses related to public events were $81,000 in 2010 versus $213,000 a year ago.

On an annual basis, 2010 was the first year since the GreenCurrents program began that revenue exceeded costs (with a surplus of $90,707 for the year). To date, the program continues to experience a net revenue deficiency of $2.1 million.