Press Mention The Chattanooga Times January 28, 1998
SACE Quoted
'Green' power option in the making
In this mention
TVA plans to launch a green power pilot program within four years, allowing customers to purchase electricity generated from renewable resources like solar, wind, and biomass for a premium of $2-$10 per month. Dr. Stephen Smith of the Tennessee Valley Energy Reform Coalition supports the initiative, which expects to add 100-300 megawatts of clean generation capacity by 2002. The program reflects broader industry trends toward renewable energy options as environmental regulations tighten.
This is long overdue and I think there could be a lot of interest among customers interested in promoting more use of renewable resources
Stephen A. Smith
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Full transcript
'Green' power option in the making
By Dave Flessner
The Chattanooga Times
CENTERVILLE, Tenn. — Electric users in the Tennessee Valley may soon be able to go "green" with their power purchases, but it will also probably cost them more green to do so.
Within the next four years, TVA hopes to be able to give its customers the option of buying power generated only with renewable resources such as solar, wind or biomass.
Consumers participating in the pilot program will probably pay a premium of $2 to $10 per month if the TVA pilot program resembles that of similar programs now offered at more than two dozen other utilities. But environmentalists that urged TVA to adopt the program expect many consumers will be willing to pay extra to help the environment, just as many consumers now pay a premium to buy organically grown food.
"This is long overdue and I think there could be a lot of interest among customers interested in promoting more use of renewable resources," said Dr. Stephen Smith, president of the Tennessee Valley Energy Reform Coalition and one of those interested in participating in the new program.
TVA will contact more than 200 potential producers of "green power" for generation proposals. Lynn Maxwell, manager of system integration for TVA, said he expects the program will start out adding 100 megawatts to 300 megawatts of additional clean, electricity generating capacity.
Proposals from independent power producers are due by May 21 and, if there is sufficient consumer interest among residents and TVA distributors, special green power options could be available for consumers by the year 2002.
"TVA's efforts to add green power to its energy supply mix reinforces our environmental stewardship role," said Bill Museler, executive vice president for TVA transmission and power supply.
TVA is turning to other power producers to help meet future power demand without creating more pollution and without having to spend more of its own money.
But TVA Chairman Craven Crowell said Wednesday he wouldn't rule out TVA beginning some green power programs of its own in the future.
"With the deregulation of electricity, consumers will have a lot of choices and the green option is another important choice to provide," said Ed Holt, an energy consultant who has studied the trend.
"Surveys consistently show that many consumers would rather buy power that is generated from renewable sources and many are willing to pay more to do so."
Former TVA Chairman David Freeman was one of the pioneers of the green power option when he started the option at the Sacramento, Calif., Municipal Utility District in 1993.
Stricter environmental regulations designed to limit the emission of smog and greenhouse gases could force more utilities to turn to alternative energy sources to meet their growing power demands.