When a renewable energy generator produces one megawatt-hour of electricity that is certified and sold into the electricity market, it produces a Renewable Energy Certificate, also known as a Renewable Energy Credit, or REC. That REC is the legal representation of the renewable energy generated, which then may be sold to a buyer, such as an individual or an organization. In this way, REC buyers are helping to support renewable energy.

RECs sold under PSO's Renewable Energy Choice are retired on the North American Renewables (NARs) registry under Public Service Company of Oklahoma Renewable Energy Choice Program. As a general practice, PSO does not retire RECs on behalf of specific customers but will retire an amount of RECs equal to the total volume sold to customers each year under the tariff. Please check with your Key Account Manager to learn more.

These options are designed to help customers achieve their sustainability goals. Program options A, B, C1 and C2 are premium renewable programs, meaning subscribing customers pay a small, incremental fee and receive RECs in return. Program option D is a cost-based offering whereby enrolled customers pay a rate based upon the fixed costs of PSO's renewable resources through their monthly enrollment fee, and in return receive RECs and receive a credit at the average fuel cost for their energy enrolled in the program. The net of the program fee and the fuel rate credit may or may not be additive to the enrolled customer's monthly bill. While customers may use certain options to help reduce volatility in REC and fuel costs by locking in a 10-year rate, they are not designed to be cost-saving measures.

PSO's WindChoice program is now referred to as PSO's Renewable Energy Choice. This new program includes the addition of solar RECs, thus it will be known as Renewable Energy Choice rather than WindChoice.

Customers subscribed to option C1 will receive RECs generated from PSO's portfolio of wind and solar resources, while customers subscribed to option C2 will receive RECs from additional wind and solar resources with a commercial operation date of January 1, 2024 or later.

Enrollment for options A, C and D is based on a percentage of the customer's usage (customers can enroll anywhere from 1-100 percent of their usage). For example, if a customer is enrolled at 50 percent, and their kWh usage increases post enrollment, they would still be getting 50 percent of their usage, regardless of the usage amount. If a customer is enrolled at 50 percent and wants to increase to 100 percent, they would need to sign up for an additional 50 percent for another 10- year term at the prevailing rate, which may or may not be the same rate at which they initially subscribed.

Options A, C and D allow customers to enroll anywhere from 1-100 percent of their usage in either of the aforementioned options. For customers wishing to enroll in greater than 100 percent, we offer option B, which allows RECs to be purchased in blocks of 1,000 kWh. Option B is perfect for customers that have facilities outside of PSO's service territory but need to achieve net-zero, or for customers who simply need more RECs to achieve their goals. Please note that option B is only available to customers who are already subscribed to one of the other program options at 100 percent.

Option A and B will be priced annually with the new rate taking effect the first billing cycle of January. On options C-D, the rates may be repriced if the market changes materially or if PSO adds new renewable resources to its portfolio; however, the customers already enrolled in those options will be grandfathered into their current rates for the remainder of their 10-year term.

Option D is a great option for customers looking to reduce the volatility associated with their fuel costs. Customers enrolled in option D, will receive a credit at the energy-related fuel rate for their kWh enrolled in the program. Within each service level's fuel charge there is a small cost component for capacity-related charges, which a customer will still be obligated to pay. This specific number/rate varies by service level. Please contact your Key Account Manager for additional information.

Options A and B are both one-year commitments, and then month to month thereafter. The cost of options A and B will both be evaluated and updated annually. Both A and B are based on the same formula so, the Option B price in 2023 would be $3.20 per 1,000 kWh. Customers enrolled option B must remain 100% enrolled in one of the other program options while they are enrolled to program option B.

Options A and B are both one-year terms, and then month-to-month thereafter. For options C and D, the term for all enrolled is a minimum of ten years. After the initial ten-year term, enrollment under these programs will be automatically renewed at the prevailing rate each year unless termination from the program is specifically requested with at least a 30-day notice by the customer. Customers can increase, but not decrease, their program enrollment percentage if additional availability exists during the initial 10-year term.

PSO filed these options with the Oklahoma Corporation Commission and they were approved in November of 2023. PSO is currently accepting applications for program options B, C1, C2 on a “first come, first served” basis, with any excess customer request going onto a waitlist. PSO currently has program options B and C1 available while program options C2 and D will be available in 2025 and 2026, respectively.

If a customer is enrolled in a program option at 100 percent of their kWh usage, the emission rate is zero. There are no carbon emissions from our wind and solar generation.