Introduction
This report, Powerful Choices III, provides a look at current retail green power programs in the Pacific Northwest and beyond. For our purposes, "green power" is defined as power supplied by renewable resources – solar, wind, geothermal and low-impact hydro – or by landfill gas. A "retail green power program" or "green pricing program" is any program that allows customers to choose an environmentally preferred power source or otherwise contribute to the development of new renewable resources. All programs in the survey require a premium from the customer.

Beginning in the summer of 2000, the Renewable Northwest Project (RNP) began publishing "Powerful Choices", an annual report detailing retail green power programs in the Pacific Northwest and beyond. Powerful Choices III is an update based on the original and a summary of what has developed over the last year. Given last year’s energy crisis, recent increases in electricity rates and the volatility of gas prices, Americans may be more "energy aware" than ever, making this a crucial time in green power marketing. RNP feels it is important to keep up with the progress of established programs and stay abreast of the new offerings.

Since our 2001 report, the Northwest has seen the implementation of eight new green pricing programs as well as an impressive increase in green kilowatt hours (kWh) sold in the region. Several new pieces of state legislation enacted in the region have helped propel green power programs forward. The result is that the Northwest is selling approximately 162.9 million kWh of green power per year, more than tripling last year’s 47.1 million kWh estimate (includes Pacific Power/Utah Power’s entire western service area of Oregon, Washington, Wyoming, and Utah). The popularity of green power programs has helped to provide demand for several new wind projects in the region. Our hope is that this momentum will persist, motivating other utilities to join in offering customers green power. The examples provided in this report are intended to inform and encourage other utilities as they undertake offering a green power choice to their customers.

Why Go Green?
The benefits of developing a green power program are many. First and foremost is education. Utilities can act as a vital resource to consumers seeking information about energy sources, efficiency, and conservation. We have seen many utilities successfully market their green power product as part of an energy efficiency or conservation campaign. Through education, consumers will be in a better position to make wise choices about their energy use.

Second, green power programs foster investments in clean, renewable power sources. According to the Environmental Protection Agency (EPA), electric generation by conventional methods is the single largest source of industrial air pollution in the nation. As utilities come under increasing pressure to reduce emissions that contribute to acid rain and global climate change, green power programs offer an opportunity to offset some of the adverse environmental effects of conventional power generation. In addition, investing in renewable power diversifies the energy mix, reducing dependence on fossil fuels (and their inherent price fluctuations) and providing long-term rate stability.

Lastly, renewable projects provide a local economic boost. Rather than sending millions of dollars out of the community to pay for imported fuel, customers spend locally to build and maintain generating systems that are fueled for free, by the sun, wind or earth’s natural heat. Lease payments to farmers and ranchers for wind development provide a secure second income while allowing continued agricultural production.

The recent energy crisis in the West and the need for additional resources, underscores the importance of how we meet our energy needs. Compared to conventional fossil fuel resources, renewable power is clean, stable-priced, and infinite. As utilities in the Northwest face an evolving industry, many are choosing to embark on green power programs to give all customers the benefits of a green power choice.

Summary
We begin with a discussion of energy legislation passed in Washington and Oregon, which has dramatically impacted retail green power offerings in each state. Next, we closely examine green power product and pricing options, marketing strategies, participation levels, and future goals and commitments of the surveyed green power programs. This section is intended to provide a comprehensive look at the range of approaches utilities have taken to date.

In the following section, we draw a few general "lessons learned" from the experiences and insights utility representatives have shared. Utilities have made a wide range of decisions since launching their green power programs and have responded quite differently to the recent energy crisis in the West. This section discusses the varying degrees of persistence and involvement the programs have prescribed. While there is no single strategy to ensure success, the most popular programs in terms of customer participation procure a combination of the following: getting to know the customer; partnering with community organizations, environmental groups, and local businesses; being persistent and consistent; making commitments to further green power purchases; and having a positive attitude.

In the full report, you will find "At-a-Glance" profiles of the twenty-seven utility green power programs surveyed. Each profile includes a brief summary of the program and short descriptions of the green power offering, pricing scheme, marketing techniques, and customer responses. At the end of the report, we list resources for learning more about green power options.

Download a PDF of the full report here.  (948K)