Electric company starting renewable energy credit program - questions

[wildflowergardener]

Hi. I just was on the Amerenue webpage (my electric company in St. Louis) and see they are starting a program where you can purchase renewable energy credits equal to the amount of electricity you use for an extra 1.5 cents extra per kilowatt hour.

I'm trying to understand exactly what this is - haven't quite understood the explanations I've read so far - I am not quite clear on if this is the same thing as purchasing renewable energy - if what I'm paying, is actually paying for someone to produce renewable energy equal to what I use that is put into the general electric system, - or if it's just basically a donation to help pay for new renewable energy sources.

A bit confused about what this actually is and wondered if anyone could explain this in dummy terms.

It sounds like a good thing - but I also know you can purchase carbon credits to offset your energy use - and wondered if you had to choose between one or the other, based on how much you could afford, which would be a better thing to do?

Confused.

Meg

[Dogmudgeon]

1. It's a commodity

Most of these programs have slightly different rules, but they are similar to buying bonds or securities. They may also give you tax breaks. And it is very likely that the program will change toward standardization as the "carbon market" develops. You may be offered a buy-out or conversion in a few years. This can be to your benefit, but you have to know the territory.

You really have to call your electric company and have a rep explain their terms to you.

In general, this is a Good Thing, but you should look before you leap. Also keep in mind that there is a gallon of greenwash to comes along with these programs.

Good luck!

--p!

[wildflowergardener]

2. info on website

It doesn't seem like you are buying bonds - that is I don't think I get anything back for this myself. This is very confusing. It says they are going to be sending out promotional materials later on - maybe they will explain it better in there cause I looked at all the websites of companies involved, and I still don't understand whether if I pay this extra money that means that a certain amount of renewable energy would be put into the system to cover my use - I think maybe that's the case but still don't exactly understand what a Renewable Energy Credit is.
I'll have to do a little more research this weekend.

Pure Power – AmerenUE’s Voluntary Renewable Energy Program

Pure Power gives you the choice to pay a little extra―1.5 cents per kilowatthour (kWh)―to support the development of wind power and other forms of renewable energy in Missouri and the Midwest. No contract is required when you enroll in Pure Power, and you can cancel your participation at any time.

Pure Power will be supplied from Green-e Certified® renewable energy certificates (RECs) drawn from regional wind energy and other renewable generation facilities. Pure Power supports 75 percent of customer demand with wind energy and 25 percent from a blending of other forms of renewable energy sources.

After you sign up for Pure Power, AmerenUE will use Pure Power funds to purchase RECs from existing regional wind and other renewable energy sources.

As this electricity from renewable sources comes into the regional energy pool, it displaces electricity that would otherwise come from fuel sources like coal and natural gas. By paying a little more on your electricity bill each month, you support the development of renewable energy in the Midwest.

You will see Pure Power as a line item on your bill each month. Pure Power’s renewable energy premium of 1.5 cents extra per kilowatthour (kWh) is among the lowest green premiums of all similar utility programs currently offered in the Midwest.

[Dogmudgeon]

4. 75% from wind -- you are quite fortunate

I live in Philly, and PECO has been telling everyone who will listen how "green" it is. They have several alt-energy programs, and while they make grand claims about how green the energy is, it's actually still only in the single-digit-percentages. And the premiums can be pretty steep, depending on the plan.

Nationwide, I think about 1/2 of 1% of the energy we use is from the wind. If you can buy 75% wind power for a premium of a mere 1.5 cents per kWh, take heart that you live in an excellent energy market!

--p!

[razzleberry]

3. there are better places for your money

for example, buy and use compact flourescent bulbs.
encourage others to do the same.

.......................................

you have no idea what the money gets used for,
when corporations ask for a hand out.

[wildflowergardener]

5. bulbs

Oh - well I have already replaced all my bulbs, and was pleasantly surprised by how much my electric bill decreased each month - I am on budget billing, and I think I didn't have to pay it something like 3 months in a row, because of doing that. Actually it's probably decreased enough to pay for doing that program with what I've saved from the new bulbs, - if I was, in fact getting green energy for what I was paying. I do need to go into what exactly the money goes for.

I also just looked a bit earlier today into investing in renewable energy mutual funds. That interests me - though I wouldn't have alot to invest - one of them had a $100 opening investment if you were on the automatic investment program - I think could invest as low as $100 a year automatically. Again, I will have to do more reading though on all these things.

Meg