Tacoma Power will buy $15 million in renewable energy credits from Iberdrola Renewables Inc. The contract begins in 2012 and will run through the end of 2019.
The renewable energy credits will come from Iberdrola Renewables’ wind generation projects.
The purchase will help the utility comply with Initiative 937, which mandates that 15 percent of utility power comes from renewable sources by 2020. The law also allows utilities to buy RECs instead of purchasing renewable power.
The utility says that because it does not need additional electric generation to serve its current load, purchasing RECs makes the most financial sense for the utility and its customers.