The Hartford Courant, Conn. --Oct. 23
Oct. 23--Connecticut consumers will be offered new choices next year to buy electricity from renewable sources, such as wind and water -- if they are willing to pay more for it.
The new choices come under a plan that state utility regulators approved this
week to support the development of alternative energy sources, which could
include solar and biomass in addition to wind and low-impact hydro dams.
A second plan approved by the state Department of Public Utility Control
allows the ratepayer-funded Clean Energy Fund to pay for new alternative energy
projects.
Connecticut previously had two green power suppliers. But the Connecticut
Energy Co-op closed in 2002, and Green Mountain Energy stopped doing business in
the state in 2003.
The plan for new choices was authorized by the General Assembly as part of
the electric restructuring legislation passed in 2003.
Supporters this week praised it as one of the most progressive in the nation.
"I think there is no question, it's going to be the model people look at
in other states," said Jonathan Edwards, director of external affairs for
SmartPower, a Hartford-based not-for-profit organization that promotes renewable
energy.
Under the plan, Connecticut's electric utilities will choose two green power
suppliers that will each offer two options: one to supply 50 percent of a
customer's electricity from renewable sources, the other to supply 100 percent.
The suppliers will be chosen with state oversight through a bidding process
that favors companies buying renewable energy from nearby power producers, such
as wind farms in New York.
Suppliers said prices are currently about one to two pennies per kilowatt
hour more for electricity from renewable sources than from conventional sources,
such as oil, natural gas and nuclear fuel.
The extra cost would translate to about $10 for a family consuming about 500
kilowatt hours of electricity a month.
The higher price helps support the higher cost of producing alternative
energy. Supporters likened it to consumers paying a premium for organically
grown fruits and vegetables.
However, the renewable energy may be placed on the power grid far from
Connecticut, and the power flowing into local homes on any given day will still
come mostly from plants running off conventional fuels.
Green power suppliers said that should not deter people from supporting
renewable energy.
"This is a really simple way people can take a proactive step to
diversify our energy supply," said Robert A. Maddox, northeast regional
manager for Sterling Planet, one of the companies hoping to be chosen as a
supplier. "We understand it is not for everyone."
The program will be ready sometime in the early part of next year, and
industry officials hope to begin marketing the offerings before Earth Day in
April. State regulators set a first-year goal of signing up 2,000 customers,
increasing to 4,000 by 2007.
State regulators said they fully expect the numbers to be met. When Green
Mountain left Connecticut the company had about 1,300 customers. The Connecticut
Energy Co-op had about 11,000, though not all of those purchased renewable
energy.
Under the second decision regulators approved this week, the state's Clean
Energy Fund was authorized to invest in new alternative energy projects.
The decision is notable because of the large amount of electricity to be
placed on the nation's grid -- 100 megawatts, or enough to power about 800,000
homes.
The fund's money comes from a small surcharge assessed on ratepayers' bills.
Charlie Moret, a spokesman for the fund, said fund managers did not know at this
time how much money would be needed to develop the projects.
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