Most people I know, including myself, say they’re in favor of “greener” energy sources — wind, water, sun, geothermal. It sounds so wonderful — making things go by using what the earth already provides for free.
So, here’s the question — are you willing to pay more green to go more green?
My electric energy provider (that’s new-speak for what used to be called the power company or electric company) made me quite an offer today: I can support fuel-free wind energy simply by paying more each month for the same amount of power!
And I quote: “A small additional charge [their emphasis] to your monthly Allegheny Power electric bill covers the added expense of delivering clean, renewable, fuel-free wind energy to the electric grid.”
Basically, I’d be paying for renewable energy certificates (RECs) (or rather, a piece of a REC). I know a little bit about RECs because I wrote a white paper on renewable energy for a client a while back. The concept is a little hard to understand (to put it mildly). Here’s the gist.
Burning fossil fuels to generate electricity has a positive outcome (electricity) and a negative outcome (greenhouse gas emissions). Using renewable energy resources to generate electricity has two positive outcomes: electricity plus no negative environmental impact. These two “positives” are decoupled and sold separately: the electricity is sold into “the grid” and the positive environmental attributes are sold as RECs. One REC equals one megawatt-hour of renewable energy produced. Buying RECs supports the use of renewable energy by subsidizing those who produce it. It’s also a way for companies and individuals to demonstrate their commitment to “going green” and to “offset” their use of fossil fuels.
(And no, I’m not making this up.)
Of course, the letter from the electric company explains nothing about RECs or what you’re actually buying for your extra dollars. I can simply check off whether I want to spend an extra $2.50, $5.00, $7.50, or $10.00 a month to purchase 100, 200, 300, or 400 kWh of renewable energy. (Note the discrepancy: 1 REC = 1 mWh, which is 1000 kWh. So in none of these options are you buying the equivalent of one REC or even half a REC).
The only mention of RECs comes in a footnote on the back of the letter, explaining that the Renewable Energy Certificates supplying the program come from 20% Pennsylvania wind farms, 20% PJM wind farms, and 60% MISO wind farms. It goes on to explain what PJM and MISO are — two different organizations handling electricity transmission in the Mid-Atlantic and Midwest regions.
So, how many customers of Allegheny Power getting this letter are even going to understand what the heck they’d be paying more for? (Other than the vague description that they are being “invited” to “boost the demand for fuel-free wind energy here in your home state and in the Midwest.”)
And, back to my original question, how many are willing to do it — to pay more green to go more green? To voluntarily spend more money to promote greener energy?
Maybe a lot? People spend more for lots of things they perceive as better for the environment — hybrid cars, organic foods, low-VOC paints. But for all these things, they also perceive return on their investment, such as saving money on gas, ingesting fewer hormones and pesticides, or breathing fewer chemicals.
But when the payback’s not quite so clear, so personal, will people be willing to pony up?
I’ll be curious to see and will be watching for future mentions of the Allegheny Renewable Energy Program and its enrollment figures, if they’re ever disclosed.
In the meantime, I’m not willing to part with any more of my hard-earned dollars. (I would be more likely to invest directly in a wind farm, as a shareholder, if I wanted to support wind energy). I suspect at some point soon (like if Cap-and-Trade becomes law) the decision will be made for me. And cost a lot more than $2.50 to $10 a month.
Today the world is the victim of propaganda
because people are not intellectually competent.
More than anything the United States needs
effective citizens competent to do their own thinking.
~ William Mather Lewis
Writing by Ear 