Memphis wavering on 'green power'

WINDS OF CHANGE
Memphis wavering on 'green power'
By Tom Charlier
The Commercial Appeal

Residents in cities such as Nashville, Knoxville and Chattanooga soon will have the option of paying a few extra dollars a month to acquire some of their electricity from solar or wind energy or landfill gas.

But it's not clear yet whether any such environmentally friendly "green power" will be available to Memphis customers.

The Memphis Light, Gas & Water Division is the only big-city distributor in the Tennessee Valley Authority system that hasn't agreed to participate in a program to test-market green power.

LG&W officials say no final decision has been made. But the utility's reluctance has been a source of frustration to environmentalists supporting the test program.

"There's no reason they shouldn't participate," said Stephen Smith, executive director of the Tennessee Valley Energy Reform Coalition, a TVA watchdog group that backs the program.

If it chooses not to take part, LG&W would be "short-shrifting their customers," he said.

Utility officials cite concerns over the program's uncertainties. TVA has yet to provide all the necessary information on billing, reimbursement and other matters, said Mark Winfield, acting manager of budget, plant and rates for LG&W.

"A lot of these details never have been worked out," he said.

Of greatest interest to LG&W is the effect the green power program would have on customers who don't choose to participate.

"We are very concerned that the costs of this program are not borne by the customers who don't choose green power," Winfield said.

Slated to begin next year, the test-marketing program represents TVA's initial foray into green power.

Green power generally includes: electricity generated by wind and solar energy, biomass projects and burning the methane gas created by decomposing landfill waste.

Proponents hail the options as cleaner alternatives to coal-fired plants and other nonrenewable energy sources.

Only a fraction of the electricity generated in the United States is derived from green power. But growing concerns over smog, greenhouse gases and other pollutants are generating new interest.

Just last Monday, Energy Secretary Bill Richardson outlined plans under which the nation would obtain 5 percent of its power from wind energy by 2020 — a 50-fold increase over today's levels.

TVA announced its drive to begin pursuing development of green power in January 1998. The agency issued a call for proposals to study options and received 22 responses involving wind, solar and biomass power.

In launching the effort, then-transmission and power supply executive vice president Bill Museler said, "TVA's efforts to add green power to its energy supply mix reinforces our environmental stewardship role."

Since then, a "multi-interest" team working with the agency has been developing a marketing plan to gauge the level of interest in green power in the valley. The amount of interest will dictate how much green power TVA purchases from suppliers or builds into its own generating network.

In past surveys, TVA found that 84 percent of the customers contacted supported the option of buying green power — even if they choose not to participate.

Under the test program, customers would be offered the option of paying more each month — $2 to $10 has been the general range elsewhere in the nation — to have green power added to their energy supply mix.

The extra charge reflects the higher costs to produce green power.

Smith said the program offers environmentally conscious electrical customers the chance to "put our money where our mouth is."

At least eight TVA distributors — including those serving Nashville, Knoxville, Chattanooga and Huntsville, Ala. — plan to participate in the test-marketing program.

"We really do think this would be something that would be good for our customers," said Allen Bradley, power-use engineering manager for Nashville Electric Service.

As for LG&W, Winfield said that even if the utility doesn't opt to take part in the pilot program, it could ultimately participate in a permanent green power program.

To reach reporter Tom Charlier, call 529-2572 or E-mail charlier@gomemphis.com