UNEASY WITH THE COST OF NEW ENERGY IN GEORGIA

From the Atlanta Journal-Constitution, on New Energy and the cost for it: “Let the presidential candidates, Gov. Sonny Perdue and other politicos sing the glories of homegrown resources and energy independence. Let Al Gore and Leonardo DiCaprio make all the movies they want about global warming…Hardly anyone is buying it.”

But New Energy is so popular - how could that be?

There are good reasons. Only a third or fewer of Georgia utility ratepayers even know they have the option. And power rates are going up anyway, so who needs the cost of New Energy to add an extra burden? And Georgia Power’s premium rate for New Energy is the 8th highest in the country, of 800 such programs. That is especially problematic in the absence of ratepayer education programs to teach customers why wind and sun don’t produce free energy.

Michael Whiteside, CEO, Coweta-Fayette EMC/ president, Green Power EMC: "Everybody says they want to support it, but it's been a tough sell…"

Here’s the question: Since Southern Company subsidiary Georgia Power gets its New Energy from low cost landfill biomass programs instead of high cost solar, why is the Georgia Power premium price so high?

Could it be that Georgia utilities still operate in the headset of “greenwashing” and are not yet ready to take substantial action?

Stephen Smith, executive director, Southern Alliance for Clean Energy: "What we see in Georgia is 'what's the minimum that we can do?' We'll take your money and we'll green wash and do a lot of propaganda about the program…[They’re] 10 years behind the curve ... Southern Co. is looking at offshore wind, but they're not really advancing the ball on renewable energy in a credible or serious way."

Georgia utilities claim they are investing aggressively and building New Energy programs for the long term. Dubious New Energy advocates say the money is going to “administrative and marketing costs” instead of real development. There is evidence Georgia Power has spent almost a third of New Energy premium monies on such costs but the company says it is making corrections and will spend only 1% of 2008 monies that way.

There are other good signs. The Georgia Power program has been “e-certified” by the Center for Resource Solutions in San Francisco, an independent and respected auditor. At least one utility coop was also certified.

Environmentally serious customers are far from satisfied. They don’t think the landfill biomass-generating biogas makes electricity as clean as wind and solar.

Michelle Conlon, New Energy activist, solar panel seller & Georgia Power customer: "If they had something in place where they were doing wind turbines on the coast, or solar modules, or solar plants, or something like that, I would be more inclined to pay more for that…But it's just really hard for me to justify paying more for landfill methane gas."

Georgia utilities are nevertheless expanding their biomass/biogas generation programs. Until Southern Company wakes up and gets behind the building of offshore wind and solar installations, biomass is Georgia’s readiest source of New Energy.

Georgia utilities have at least one sure customer for all the New Energy they can produce, even at premium rates. Robins Air Force Base. Why is the Air Force such a good customer? Because the military has a federal mandate to buy New Energy.

That, of course, begs the question: When is Congress going to catch up with the military and pass a national Renewable Electricity Standard (RES) mandating a minimum level of New Energy coming from all the nations utilities?

This fall, Congress has one last chance to act. Polls prove Americans want action. In November, they will have the opportunity to pass judgment on the action they get.

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Green energy a tough sell in Georgia; Georgia Power charges nearly highest rates in country for green energy
Stacy Shelton and Margaret Newkirk, August 10, 2008 (Atlanta Journal-Constitution)

WHO
Georgia Power (Tal Wright, spokesman ) and corporate parent Southern Company; Michelle Conlon, New Energy activist & solar panel seller, Georgia Power customer; Green Power EMC; Michael Whiteside, CEO, Coweta-Fayette EMC/ president, Green Power EMC

WHAT
Because of extra charges for electricity from New Energy sources, Georgia Power customers are not buying. The state is dominated by conservative legislators unlikely to pass a state Renewable Electricity Standard (RES). New Energy advocates in Georgia are therefore desperate to see Congress pass a national standard.

click to enlarge

WHEN
- In 2007, the U.S. House of Representatives passed a national RES calling for utilities to obtain 15% of their power from New Energy by 2020 but the measure did not make it through the Senate.
- 2003: Green Power EMC launched a “green energy” initiative.
- 2006: Georgia Power added its option.
- 2007 NREL report: Only 20%-30% of utility customers know a higher-priced New Energy option is available.

WHERE
Georgia’s utilities presently obtain ~1% of their power from New Energy sources. All the New Energy they sell comes from Georgia.

WHY
- Georgia Power’s added cost for getting electricity from New Energy sources is $4.50/month.
- About 0.2% of their customers are paying the extra charge.
- Nationally, 2% of ratepayers are paying the extra cost of New Energy.
- Georgia’s primary source of New Energy is biomass/waste, which is used to generate biogas that can fuel electricity production just like other forms of gas.
- Green Power EMC is an association of Georgia electric utility cooperatives.
- Of Georgia’s New Energy programs:
Average cost programs – less than 3 cents/kilowatt-hour (kW-h)
Low cost programs – 2 cents/kW-h, ~$3/month
Georgia Power and other high cost programs – 3.33 to 4.5 cents/kW-h, $4.50 to $5/month
- Florida Power & Light's Sunshine Energy program was shut down by the Florida Public Utilities Commission when it was found that ¾ of the ratepayers’ $11.4 million spent since 2004 went to a Texas contractor for marketing materials, administrative salaries and other management costs.

The only real wind Georgia has is offshore. (click to enlarge)

QUOTES
- Suzanne Shelton, marketing, Shelton Group, on ratepayer attitudes: "[The cost of New Energy is] confusing. [They think], it's the wind. Why isn't it free?"
- Ellen Graham, resource manager, Unicoi State Park and Lodge, on their $2,448 yearly buy of New Energy: "It's the right thing to do... We say we like to walk the talk because we want to efficiently use the resources that we're here to protect…"