11/27/2009 (2:09 pm)
‘Green power’ abuses?
The solicitations have been flooding people’s mailboxes lately: Pay a bit more on your electricity bill for 100 percent clean wind power. Or, the fliers say, buy "green power certificates" to offset your global warming emissions.
Close to a million electricity customers have signed up for such payments voluntarily, and the amount of electricity sold in this way has nearly tripled since 2005. But the participants are in a distinct minority, with a sign-up rate of only about 2 percent in programs run by utilities.
The government has looked at the question of whether these programs really cause more renewable energy projects to get built, and says it is difficult to draw an overall conclusion. Its experts say they believe that some green power programs work better than others.
At least one major program has come under fire from regulators. Last year, a Florida Power and Light green power program was terminated by the state’s Public Service Commission after an audit found that promised solar power facilities were far behind schedule. The program had more than 38,000 customers, and was once the sixth-largest in the country. The audit also found that the vast majority of homeowners’ payments went into marketing and administration.
About a quarter of the country’s utilities offer green power programs, and the way they are structured varies. In practice, no big utility delivers 100 percent renewable power to any customer, because electricity from all sources — coal plants, wind farms, solar panels — is mingled in the same wires. The utilities are essentially collecting extra money that they promise to use to support the development of renewable energy, a pitch that some customers find persuasive.
"It’s about what’s good for the planet," said Mark Renfrow, a Dallas homeowner who this summer began paying an extra $26 or so a month to his electric company, Direct Energy, for 100 percent wind power.
But some advocates for electricity consumers argue that the payments make little difference. Matthew Freedman, a staff lawyer with the Utility Reform Network, a ratepayer advocacy group in California, said, "There is very little evidence to suggest that customer subscriptions have resulted in any new additions of renewable power."
Early this year, the city government of Durango, Colo., stopped buying renewable power from its utility, saving $45,000 a year. The clean electricity had cost 40 percent extra — and the city manager, Ron LeBlanc, was irked that part of the payment went into putting solar panels on a school in a different city.
"Paying more and then investing in a community 16 miles away was offensive to a lot of us," he said.
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