October 24th, 2007

Buying Green Power from Your Local Utility

Posted by Cassie Walker

Before 1997, utilities were monopolies that faced no competition - where you lived was the sole determinant of who provided your energy. Since then, 18 states have opened their markets to competition, and six more are on that path. In addition, 15 states require power companies to produce at least some of their energy from renewable sources, like the sun, wind, and water.

What does this mean for you, the consumer? Namely, choices. In many places you can choose to pay a bit more, usually an additional $.01 to $.03 per kilowatt hour, to have renewable energy added to the grid, replacing some of the more polluting (and finite) fossil fuels typically used to generate power. By purchasing “green power,” you also support the development of more facilities that generate electricity from renewable resources.

Specifics vary by city. We will cover New York, Los Angeles, San Francisco, Chicago, Dallas/Ft. Worth and Miami here.

New York City

According to Con Edison, if a mere 10% of the households in New York bought green power, it would prevent the release of nearly three BILLION pounds of carbon dioxide, 13 million pounds of sulfur dioxide, and nearly four million pounds of nitrogen oxides each year. That would be a major reduction in the state’s contribution to global warming.

As is common in competitive electricity markets, New York’s service is split into two parts: supply and delivery. You can select a supplier of green energy for all or part of your electricity, but Con Edison will continue to deliver it and will respond to any outages or emergencies.  

Con Edison itself offers wind power through their ConEdison Solutions program. In addition, several green power suppliers have kept it simple and arranged for their customers to receive one bill for both supply and delivery, through Con Edison. These suppliers include:       

• – Accent Energy: wind and water generated exclusively in the state of New York·         
• – Econnergy: wind power    
• – IDT Energy: blend of wind, water, solar, and biomass 

Los Angeles

Though California’s energy market is regulated, the Los Angeles Dept. of Water and Power (LADWP) sponsors a green power program available to both residential and business customers. In return for paying a slightly higher price for your power, you are guaranteed that your power will come from renewable sources. This sort of “green pricing” program is typical in many large municipalities in regulated states. An important point about this optional program is that your green power purchases count above and beyond commitments the LADWP has made to secure 20% of its power from renewable sources by 2010. So, you are truly helping to stimulate the construction of green energy facilities above what the LADWP already has planned.

The extra cost of $.03 per kilowatt hour is at least partially offset by the free energy efficiency products and serviced provided by LADWP when you sign up. Besides, that additional $.03 translates to only $3 per month more, based on a selection of 20% green energy and a monthly bill of $50. Currently, the fees are used to purchase small hydroelectric and wind power on the open market, as well as for the development of a new renewable energy plant in Los Angeles.

San Francisco

In San Francisco, they do things a little differently…which is why we love San Fran so much in the first place, isn’t it? Power supplier PG&E touts its accomplishments in increasing the amount of clean and renewable energy supplied to its customers – in 2006, 12% of its electricity came from renewable sources, particularly hydroelectric, biomass and geothermal. A whopping 86% came from nuclear, large hydroelectric projects, and natural gas, though these sources certainly have their drawbacks. Notably only 1% of the power is supplied through the most common source of energy in the US: coal.  PG&E also encourages and assists individuals in setting up solar systems and other means of self-generation.

But instead of offering additional green power to individuals, PG&E’s ClimateSmart™ program allows customers to offset their electricity usage. As we’ve discussed in prior articles, offsetting means that by paying a small fee you contribute to projects that remove carbon dioxide from the atmosphere. With ClimateSmart, PG&E calculates the dollar amount needed to “neutralize” your greenhouse gas emissions caused by your energy usage. This fee, typically less than $5 per month, is simply added to your bill and funds new emissions-reduction projects.

Chicago

Like in New York, Chicago’s power supply is split into multiple parts – in this case supply, delivery and metering. Commonwealth Edison (ComEd) will always be responsible for the delivery portion, but since they don’t offer green energy themselves, you’ll have to find a supplier that does.

Fortunately, ComEd provides a list of suppliers that have been certified to supply electricity in the area. To determine which supplier has green energy available, you’ll have to contact them individually, at least for now. It’s a bit of a hassle up front, but considering the long-term benefits, we think that it’s worth it.

In addition, make sure to take advantage of what ComEd does offer: reduced prices for compact flourescent light bulbs (CFLs). Lighting is one of the biggest users of energy in a home – CFLs use 75% less energy than traditional incandescent bulbs, and come in a variety of shapes and sizes. Switching to CFLs can have a big impact in your electricity usage, and thus, your bill.

Dallas/Fort Worth

Texas, with its competitive energy market, provides choice in suppliers. In the D/FW metroplex, TXU Energy holds the lion’s share of the market. Fortunately, they offer a plan called 100% EarthWise, which provides for 100% of your power to be generated by Texas’ renewable power sources. This is a big improvement in a state where, according to TXU, 59% of the energy comes from natural gas, and another 27% from coal.

Another option comes from supplier Green Mountain. Headquartered in Austin, the company provides direct access to green energy through a combination of hydroelectric and wind sources. TXU continues to deliver the electricity, and Green Mountain customers only receive one bill. In regulated markets outside of Texas, Green Mountain also partners with utilities to offer renewable energy products to their customers.

Miami

Though Florida’s electricity remains regulated, consumers still have the ability to green their power. Florida Power and Light(FPL) has partnered with Texas’ Green Mountain to provide Sunshine Energy®, a program designed to increase the amount of solar power generated in the Sunshine State. For a flat rate of $9.75 per month, FPL will produce 1,000 kWh of green power for use in Florida and neighboring states. The fees also go towards new solar arrays to be built in Florida, including one in Sarasota that will be one of the largest arrays in the southeast.

In addition, FPL offers financial incentives for residents to install their own solar systems, and they even provide a free metering system to measure any excess energy you create. This excess energy is essentially sold back to FPL, through credits to your bill. What could be better than that?

If your city is not covered here, please look online for your local power utility and see what green power options they may offer. But please also remember that the first key for lowering your environmental impact will always be to Reduce Your Consumption. Conserve as much energy as you can by insulating your home, lowering your thermostat in the winter, and installing compact fluorescent light bulbs. Making these changes will save energy, slow the pace of global warming and save you money.

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