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Press Mention Associated Press June 5, 1998

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TVA fired up about 'green' power

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TVA announced its first major alternative energy initiative, receiving 21 proposals for wind, biomass, and landfill gas projects that could generate 550 megawatts of electricity. The agency plans to offer 'green power' to residential customers by summer 2001 on a voluntary basis with an estimated $2-$10 monthly premium. Steve Smith of the Tennessee Valley Energy Reform Coalition expressed strong support while cautioning that TVA must be transparent about environmental comparisons to its existing coal-fired generation.

This is something that we would want to jump on and support 100 percent

Stephen A. Smith

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Full transcript

TVA fired up about 'green' power
21 projects offered in response
to call for alternative sources
By Duncan Mansfield
Associated Press

TVA's first major foray into alternative fuels has generated proposals for 21 projects using wind, wood waste or landfill gas to power more than 100,000 homes.

TVA is a long way from deciding how many of these proposals will pan out or what will be the demand from TVA customers.

"But we are very satisfied with what we got in response" to the call in January for project ideas, TVA senior strategy adviser Bill Irish said Friday.

TVA hopes to be able to begin offering so-called "green power" to residential customers by the summer of 2001.

Together, the proposed projects could generate about 550 megawatts of electricity – comparable to about one half of one nuclear reactor.

Specifics are confidential, including the companies involved, Irish said. However, he did say as many as three-fourths of the projects are or would be in the seven-state Tennessee Valley.

"It sounds very encouraging," said Knoxville environmentalist Michelle Neal-Conlon, who has promoted green energy to TVA. "It shows a commitment on TVA's part for preserving the environment."

"This is something that we would want to jump on and support 100 percent," said Steve Smith with the grassroots Tennessee Valley Energy Reform Coalition, adding that "the devil is in the details."

KUB, which has been carrying electricity from a methane cogeneration plant at Knoxville's landfill to the TVA power grid since 1991, said it supports TVA's initiative and "is interested in the results."

TVA sought alternative energy proposals involving wind, solar, geothermal, biomass or landfill gases.

Irish said TVA is pleased with the number of wind, landfill gas and biomass proposals received. But there were no bids for solar or geothermal. Irish said TVA would solicit some solar energy companies directly.

The pursuit for green power options is coming from the top at TVA – Chairman Craven Crowell and Director Johnny Hayes – both to help preserve the environment and the agency's customer base with coming deregulation.

Another factor is the chance that all electric utilities will one day be required to obtain some percentage of their energy from renewable fuels.

TVA's entire program will be based on the policy of "customer choice." That means residential customers won't have to buy green power unless they want it, and none of TVA's 159 distributors will have to offer it unless they want to.

There will be an additional charge. Estimates are $2 to $10 more a month for a residential customer. TVA residential bills now average $60 to $65 a month.

"We are going to have to be very open and very candid about what this stuff costs," Irish said.

Smith said TVA also will have to be honest about how green power compares environmentally to its other forms of power production – specifically coal-fired plants.

"I think this program will go real well," Smith said, "but it is going to be hard to convince somebody that they should pay a little bit extra to do good for the environment, when TVA is claiming that their existing portfolio isn't causing any environmental problems in the first place," he said.