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Posts Tagged ‘greenchoice’

AUSTIN – Public Citizen Texas will be honoring the recipients of this year’s Texas Outstanding Public Service (TOPS) Awards at the organization’s 25th anniversary dinner today. The awardees are local visionaries, recognized experts and celebrated advocates who have aided in the effort to help Texas realize a more environmentally conscious and sustainable energy future.

Those receiving the TOPS Awards were chosen by Tom “Smitty” Smith, director of Public Citizen Texas, and his staff based on their accomplishments and contributions to the overall health, safety and democracy of all Texans. This year’s lineup of winners includes two journalists, three legislators, two activists, a whistleblower, a legislative aid and a man whose lifetime of achievement merits the finest award of all.

Winners of this year’s awards include Roger Duncan, general manager of Austin Energy, Austin American-Statesman reporter Claudia Grisales, San Antonio Current reporter Greg Harman, state Reps. Dave Swinford and Rafael Anchia, citizen activists Gerry Sansing and Dr. Wes Stafford, state Sen. Wendy Davis, whistleblower Glenn Lewis and state legislative staffer Doug Lewin.

Duncan will receive this year’s Lifetime Achievement Award. Duncan is a true visionary who has not only blueprinted the greening of the Austin City Council but also of the city’s public utility. He successfully transformed Austin Energy and set standards for the rest of the nation. He has been a major player in the fight for green issues for more than three decades – starting with his journey as a student activist in the 1970s, serving two terms as a member of the Austin City Council in the 1980s and eventually leading the city’s environmental department for nine years as the assistant director. Duncan is considered the architect of several of Austin’s nationally acclaimed energy efficiency and renewable energy programs, including GreenChoice and the Green Building Program. Furthermore, under Duncan’s leadership, Austin Energy adopted ambitious goals to bring more solar energy to Austin, committing to the development of major solar generating capacity. Duncan was also one of a few people to realize early on that the city of Austin had the potential to reduce urban air pollution by using plug-in hybrids. He assembled a coalition of potential buyers of plug-ins in the country and implemented a program at Austin Energy that offered an incentive package for such hybrids. Although he has announced his planned retirement for next year, it will not be surprising to see him in some sort of leadership role in the city in the near future.

In a quote from Duncan published in the Austin Chronicle last month, he said, “Today, it is time for me to return to my original role as an involved citizen of Austin.” Public Citizen Texas welcomes him as such (more…)

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greenChoiceAfter a rash of local and national press about the recent failure of Austin Energy’s GreenChoice program, Austin Energy has decided to re-evaluate their pricing structure.  The city may be able to reduce the cost of the program by as much as 25%.  Turns out Austin Energy was overly conservative in their estimate of how much it would cost to deliver wind power, so they can knock the price back down without taking a hit.  Roger Duncan, AE’s General Manager, has also suggested spreading out remaining transmission costs to all customers.

Though some non-GreenChoice customers may object to being saddled with this slight extra cost, GreenChoice customers have to pay the same amount as traditional customers for upkeep and maintenence of dirty energy sources, so it evens out.  The other option to make the who-pays-for-what game fair would be to charge GreenChoice customers a pro-rated maintenance fee for the percentage of fossil fuel and nuclear power they received — but in order to do that Austin Energy might have to go and raise everyone else’s maintenance fee to fill in the gap, so rates could go up anyway.  Spreading transmission costs sounds like an easier way to accomplish the same goal, and is consistent with “the policy of all 850 American electric utilities with a program similar to GreenChoice,” according to a memo from Austin Energy to the City Council. Plus, the switch would add less than a cent to everyone’s bill.

Roger Duncan will go to the City Council August 20th to ask for the new rate change and cost distribution.

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greenChoiceSince the Austin American Statesman published a couple of articles on the less-than-stellar sales of Austin Energy’s Green Choice program, many media outlets have picked up the story and the takeaway message is something like “liberal Austin finds out the hard way that renewable energy is too expensive”. It’s really regrettable that this message is permeating throughout the country because it’s just not true.

Austin Energy’s sales of the most recent GreenChoice batch have been low, but I hope that folks will understand that the blame lies not with wind energy itself but some serious underlying problems with the rate structure of this program and the way the energy market is regulated in Texas (hint: it isn’t).

The high cost of GreenChoice highlights the failure of the deregulated market. Consumers are now unfairly burdened with the transmission costs to get wind energy from West Texas to the center of the state. Wind has to pay a toll to drive the power transmission highway, but coal, gas, and nuclear get a free ride. Not all utilities charge similar transmission costs, and in many places that would be factored into the simple cost of doing business, but in Austin consumers are asked to foot that bill. Then there’s the fact that coal, gas, and nuclear power currently have priority on the transmission grid.  If the wind can provide 300 MW of energy at a given time and coal can dispatch 300 MW, but there is only room for 400 MW of power to run through the lines, coal gets to move 300 MW and wind can only move 100 MW.

Another problem with Green Choice is that in addition to paying for 100% wind, customers are forced to pay the maintenance and capitol costs to upkeep Austin’s dirty power sources. That just isn’t fair – folks shouldn’t have to pay a premium for clean energy and then be asked to foot the bill for polluters too.  Folks argue that GreenChoice customers should pay a portion of the upkeep for traditional dirty power sources when the wind isn’t blowing, but they shouldn’t pay the same *full* capital and maintenance costs that average customers pay. If anything, GreenChoice customers should be offered a pro-rated charge for those costs, so that they only pay the maintenance costs for when they are actually getting power from those dirty sources. Right now, Austin Energy is asking GreenChoice customers to pay an Equal share of maintenance and upkeep for an Unequal share of power – not fair.

Then there’s the fact that Austin Energy got a bad deal on this contract. They bought into a ten year power purchase agreement when natural gas prices, and energy prices in general, were at an all time high (remember $4/gallon gas?).

Austin Energy could easily restructure this program so that it is more affordable. GreenChoice wouldn’t be so expensive if wind was operating on a level playing field with fossil fuels. Austin Energy can make that happen.

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