All of our customers buy some renewable energy as part of our standard mix of energy sources. Last year, the total was a little over 3 percent. That percentage will increase in the years ahead to meet regulatory requirements.
While all of us buy some renewable energy within our standard electric service, some customers are doing more by participating in our Energy for Tomorrow (EFT) program.
When we started the program in 1996, it was one of the first green pricing programs in the nation. Since then, participation has grown to nearly 21,000 residential customers and more than 700 businesses. According to the National Renewable Energy Laboratory’s annual assessment, our number of participants ranks ninth in the nation. In terms of sales, our program sold more than 173-million kilowatt-hours, which ranked 10th in the nation. A kilowatt-hour is enough power to light 10 100-watt light bulbs for one hour. Our average customer uses about 750 kilowatt-hours a month.
The primary sources of renewable energy used in the program are wind and landfill gas along with a small amount of solar. Because renewable energy costs more than energy generated from traditional sources, such as coal and nuclear, the price is slightly higher. The extra charge is 1.388 cents per kilowatt-hour if you buy all of your power as renewable, but you also can participate at a 50 or 25 percent level, reducing that charge accordingly.
The question always comes up as to whether we make more money on the EFT program because of the premium charged. So, I asked Pat Keily, who manages the program. “The EFT rate is set the same way as standard rates,” he said. “The EFT price just recovers the additional cost of renewable energy used for the program.”
The other question that often arises is why renewable energy costs more. After all, isn’t the fuel -- light from the sun, wind from the air, gas from the landfill and from other renewable sources – free or nearly free? That is true. The fuel itself is essentially free. However, there are costs for the investment in the equipment as well as the maintenance, and those costs -- per unit of energy produced -- are still much greater than they are for traditional sources of energy.
In the future, technology may make renewable energy more cost competitive. Until then, some customers are paying the premium for renewable energy, whether to reduce greenhouse gases or preserve energy resources.
If you are interested in learning more about EFT or want to sign up to buy more of your power from renewable energy sources, visit our website.