Cleveland City Council started the ball rolling on the local market for alternative energy at a hearing last November that considered using Cleveland Public Power (CPP) as the conduit. The follow-up happens this Wednesday, as CPP and city council host a public workshop to gather ideas on how producers of renewable energy—like a homeowner with a solar panel or a business with a wind turbine—would connect to the grid.

Working out these ‘interconnection’ rules is an important step in leveling the playing field for alternative energy because it encourages investment in distributed generation like the examples mentioned above. Another important move will be to establish a renewable energy portfolio, or policy that CPP buy a certain amount of its wholesale power from green energy producers, writes Cleveland Foundation energy czar Richard Stuebi.

To do both, CPP needs to transform itself from a small energy middleman being squeezed out by giant FirstEnergy to become a world-class urban clean energy services company.

Under the new leadership of Ivan Henderson, commissioner since just last fall, CPP may be poised to undertake a major transformation, Stuebi writes in his public comments. The recent release of CPP’s Analysis of Strategic Options indicates CPP’s interest in pursuing greater aspirations.

CPP and Cleveland Thermal (owner of a steam heat facility in downtown Cleveland) could collaborate in developing a new cogeneration facility currently being studied by the city. And CPP could own the wind turbines on the lake that the Cuyahoga County Energy Task Force is trying to bring to fruition, Stuebi adds.

“The Foundation believes that a transformation to advanced energy is an important part of the solution to the financial, economic and environmental problems facing Cleveland and the surrounding area—and that CPP is an essential player in bringing about the advanced energy future we envision.”

What rate to pay small producers—a flat, retail rate or time-sensitive prices—is a thorny issue, but a cost-benefit analysis will determine the best option, he writes. “It is notable that most other jurisdictions already having implemented net metering generally do not offer time-sensitive prices for excess energy.”

Customers could pay a fee to set up net metering and interconnection if retail rates apply, and CPP might set a limit on what they produce to a limit of 500 kilowatts credited to their bill. The benefits to CPP and the region would be more low-emissions power and more energy security from interruptions in the grid. For example, small producers might alleviate local power quality problems on older parts of the grid.

To read The Cleveland Foundation’s entire comment, go here.