Gas Utility Programs
Create customer and utility benefits with a voluntary program
Pressure to decarbonize our energy supply is mounting as the climate crisis intensifies. As a result, many gas utilities are exploring the best way to integrate renewable natural gas (RNG) – purchased as renewable thermal certificates (RTCs) – and carbon credits into their solution set as part of a voluntary program.
Voluntary programs are the best next step for most natural gas utilities as they address three major challenges:
- Demonstrate action in response to stakeholder pressure to decarbonize
- Respond to commercial customer demand to address carbon emissions
- Enable the utility to show progress in the near term, in a way that doesn’t complicate future decarbonization efforts
How we help
3Degrees’ deep experience helps utilities design, build, and grow voluntary programs faster, at a lower cost, and bearing less risk compared to relying on an in-house team. For natural gas utilities who are new to voluntary programs, it can be difficult to go it alone. Working with 3Degrees allows the utility to deploy best practices, identify and avoid risks up front, and maximize the value delivered to the utility and its most important customers.
Our gas utility program services
3Degrees’ Smart Launch Solution provides gas utilities with an efficient, cost-effective, and low-risk way to demonstrate climate action while engaging customers with near-term solutions to address their emissions today.
Confidently file the voluntary program with your Commission or governing body by utilizing insights about projected customer interest and participation, a program financial model, a detailed program design, and best practice knowledge about other successful gas programs.
3Degrees insulates the utility, participant, and the rate base from both volatility in the carbon and RTC markets, as well as unpredictable program uptake rates, which can make long-term purchasing challenging for utilities. Deliver cost-effective, compelling options for your customers to address their carbon emissions at a competitive fixed price without having to manage the volumetric and market risk across multiple years.
Leverage decades of 3Degrees’ voluntary program experience with proven marketing and communications best practices and tools that meet the highest program disclosure and Federal Trade Commission (FTC) green marketing guidelines.
Facilitate program launch and ongoing implementation success with access to the expert advice and guidance of an experienced voluntary utility renewable programs manager.
Program design
The right program design is central to a successful voluntary RTC and/or carbon credit program. However, voluntary RTC and carbon credit programs have several complex factors to consider.
Challenges include:
- Determining the right product design and pricing
- Assessing customer demand and forecasting subscription rates
- Sourcing high-quality RTCs and/or carbon credits for the program
3Degrees partners with gas utilities to help them navigate all of these considerations and ensure the design of a successful voluntary RTC and/or carbon credit program.
Marketing and customer acquisition
A successful program is one with robust and growing participation. 3Degrees is the market-leading expert in selling additional-cost voluntary programs to utility customers in ways that build the utility’s brand and result in high customer participation rates.
When we were looking for renewable natural gas attributes to supply to our customers, we had several concerns about costs and how to validate the environmental attributes. We partnered with 3Degrees given their years of industry experience, and worked with them on a verification process that made us confident in the purchase for us and our customers. The 3Degrees team was good to work with and was key in making our program possible.”
What is renewable natural gas?
Renewable natural gas is cleaned or “upgraded” biogas produced primarily at landfills, wastewater treatment plants, or anaerobic digesters processing livestock manure or food waste. RNG is a climate-friendly alternative to fossil/geologic natural gas.
What are carbon credits?
A carbon credit is created when one metric ton of a greenhouse gas (GHG) is avoided, reduced, or removed. Carbon credits are also known as carbon offsets or verified emissions reductions (VERs). In order to be used as a legitimate carbon mitigation tool, carbon credits must adhere to specific criteria.
What are renewable thermal certificates?
Renewable Thermal Certificates or RTCs are the environmental attributes associated with renewable natural gas that is injected into the common carrier pipeline network. RTCs are used to purchase renewable natural gas through the pipeline network, similar to how Renewable Electricity Certificates are used to purchase renewable energy through the electricity grid. RTCs are also called RNG Certificates, Thermal RECs, Green Gas Certificates and a variety of other names.
RTCs are used in a number of voluntary and compliance frameworks to substantiate claims of consuming renewable natural gas from a common carrier pipeline. As a relatively new commodity compared to electricity-derived energy attribute certificates, reporting requirements are still under development for some corporate sustainability initiatives.
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Demonstrate climate action today with voluntary customer programs
