Ken Silverstein EnergyBiz Insider Editor-in-Chief

Economies around the globe are growing. And with such expansion comes the need to burn more energy. While modern economies can afford to fund research and development into generation forms that are cleaner than those used in the past, it is the developing nations that present the biggest ecological threats. With China and India rapidly expanding, the need for better environmental solutions is now.

About 600 utilities -- 20 percent of all such companies nationally -- in regulated electricity markets now offer green power options, says the National Renewable Energy Laboratory in Golden, Colorado. That gives 40 million customers in 34 states the ability to purchase renewable energy to meet some portion of their electricity needs. Altogether, sales of renewable energy programs increased to 2 billion kilowatt-hours in 2004. That's a 43 percent increase over 2003.

But stronger efforts are needed. Greenhouse gases rose in the United States by 2 percent in 2004, according to the U.S. Energy Information Administration. Along with carbon dioxide, methane and nitrous oxide climbed to 7.12 million metric tons, up from 6.98 million metric tons in 2003. That's 16 percent greater than in 1990, or about 1.1 percent average annual increases. Most of the increase comes from carbon dioxide and specifically burning such fossil fuels as coal, natural gas and oil.

A lot of companies are taking part in market-based initiatives to cut carbon emissions. Several utilities, for example, helped design the Chicago Climate Exchange while a handful of power companies are participating in the Environmental Protection Agency's Climate Leaders program. They include American Electric Power and Duke Energy, which has pledged to reduce greenhouse gas emissions by five percent before 2010. Meantime, FPL Group has promised to curb such pollutants by 18 percent before 2008 and PSEG has also said it will cut such gases by 18 percent by 2012.

Progressive Players

Enterprises generally are investing in alternative power sources. And it is making both environmental and financial sense. Indeed, the populace says that it wants power companies and other enterprises to use more sustainable sources. And that's why there exist a number of public-private projects to do just that. While many alternative energy projects are in the works, FutureGen is among the most prominent. That's a $1 billion coal-fired project that purports to release zero emissions.

"Energy efficiency is a source of energy like coal, gas, or nuclear -- except instead of drilling for the energy using derricks and mines, we can tap into this clean energy source by using ingenuity to do more with the energy we generate," says Carl Pope, head of the Sierra Club. "In every home, office, and factory we can use energy more efficiently by putting to work currently available products like advanced lighting and windows that better insulate from the heat and cold."

With peak usage in Southern California about 20 percent more than in 2001 when rolling blackouts were a regular thing, Southern California Edison says that the most immediate way people can begin to conserve is by setting their thermostats at 78 degrees or higher while using fans instead of the air conditioner. It also is telling consumers to shut their curtains and turn off all their appliances that are not needed -- and to use those that are necessary in the morning or late in the evening.

Regulators there are also practicing what they preach. California's Environmental Protection Agency building has purportedly cut its utility bill by 8 percent by turning off its lights at night and asking its maintenance crews to work days. It also uses motion sensors to guide light use during the day. Altogether, it says that it has saved nearly $5 million over three years through energy conservation.

And, the Oregon Public Utilities Commission voted unanimously to renew its Conservation Tariff for four years. That tariff breaks the link between a company's earnings and the quantity of energy consumed -- all to reward suppliers for encouraging conservation. The new tariff covers all residential and commercial gas use by customers.

"Since coming on the books in 2002, the Conservation Tariff has proven its value to the public by promoting conservation," says Northwest Natural Gas Co.'s CEO Mark Dodson. "An independent study ... found that it was working well for customers, promoting conservation and stabilizing NW Natural's earnings ..."

Collaborative Commitment

Green fervor is also good for business. FedEx's Oakland, Calif. airport facility installed 81,000 square feet of solar panels that provide 80 percent of the building's needs. And Wal-Mart, recently featured in Newsweek and Fortune, is promoting energy conservation in a number of ways that include wrapping produce in materials made from corn -- not oil -- and saving 800,000 gallons of gasoline while buying boxes just large enough to hold contents. That saves about 5,000 trees, the company says.

Whole Foods is supporting it healthy image by purchasing all of its power -- for 173 stores in the United States and Canada -- from wind energy. That equates to 458,000 megawatt-hour credits a year. Prior to that, the grocery chain purchased 20 percent of its power from renewable energy sources. While Whole Foods can't know what energy source is providing its electricity, it can be assured that the credits it purchases will lead to green energy production -- helping to reduce the level of overall harmful emissions.

"A collaborative commitment to advance energy efficiency and conservation as a 'fifth fuel' to complement coal, nuclear, natural gas and renewable energy can help deliver real economic and environmental benefits to consumers and utilities alike," says James Rogers, CEO of Duke Energy.

Duke has committed $70 million over five years for the installation of energy efficient appliances, weatherization and alternative rates that encourage customers to use less energy during high demand. That effort is all part of a National Action Plan for Energy Efficiency, which has the support of utility commissions from more than 40 states as well as numerous other stakeholders. The aim is to save enough to defer the building of new power plants, which in turn would bring down natural gas prices.

One of the puzzles is whether all the energy conservation efforts are too little, too late. But, such questions take on a defeatist attitude. Economies globally are expanding and bringing with it more emissions. But, ingenuity is also on the rise, delivering newer solutions to environmental problems. The progressive consumers and businesses that are doing their part don't think they've lost this battle.

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