Green Choice: A Primer

What It Is

Green Choice is a new program by Austin Energy, offering customers a choice to help the utility purchase energy from clean, renewable sources for a small monthly premium on their electric bill.

How It Works

Over the next several months, Austin Energy will contract for new wind turbines, landfill gas recovery plants, and solar arrays (see p.24). They are committing $7.8 million a year to this program for the next 10 years. Some $4 million of that will come from savings in fossil fuel costs. Another $2.8 million will come from Austin Energy profits. But $1 million must come from subscriptions by Austin Energy residential and business customers. That will require participation by 20,000 residential customers, or a mix of residential and business customers. Austin Energy will match, dollar-for-dollar, every dollar provided through subscriptions. This means the greater the number of citizens and businesses participating -- the larger the supply of green power to be provided by the program.

The Cost

Subscribers will pay a premium of four-tenths of a cent more than Austin Energy's standard rate per kilowatt-hour of electricity used; on an average residential bill, that would be about $4 a month. Subscribers will start being billed for the Green Choice program as soon as the green power begins to flow this summer.

The Benefits

As the demand for renewable energy sources rises, Austin Energy's reliance on coal, nuclear, and natural gas usage will decrease. And because the price of renewable energy sources is stable, Austin Energy says that program participants may actually pay less for power than nonparticipants in the future as the price for fossil fuels increases.

Enrollment

For more information on Austin Energy's Green Choice program, check your next electric bill for the enclosed AE newsletter and sign-up card. You can also call AE at 499-7827, or go to: http://www.austinenergy.com/ and click on the wind turbine to enroll.

Source: Austin Energy