Public utilities in U.S. claim lead in renewable energy programs

WASHINGTON, DC, US, January 18, 2006 (Refocus Weekly)

Public utilities in the United States continue to lead the electricity industry in renewable energy activities, according to the American Public Power Association.

Public power utilities have some of the highest ranked green power programs in terms of customer participation rates and lowest rates, concludes the report, ‘Public Power: Generating Greener Communities’ that compares data from a similar 2001 study. It found that emissions from public utilities for sulfur dioxide, nitrogen oxides and carbon dioxide continue to be lower than other segments of the electric utility industry.

Emission rates of SO2 are 50% lower than investor owned utilities, 30% lower than co ops, and 33% lower than non utility generators, while emission rates of Nox are 14% lower than IOUs, 21% lower than co ops, and 50% higher than NUGs.

Public power emission rates of CO2 from fossil fuel generation are 2.5% lower than IOUs, 6.6% lower than co ops, but 11% higher than NUGs.

“The data tell a story about the results of community ownership and local control of electric utilities,” says Alan Richardson of APPA. “They contribute not only to public power's lower rates but to agile, environmentally beneficial community decision making.”

The report compiled data from the Department of Energy’s Energy Information Administration and the U.S. Environmental Protection Agency. There are 2,000 community and state owned electric utilities that serve 43 million customers in the U.S., and 70% of them are located in cities with populations of less than 10,000. Almost one third of public power's generating capacity is powered by coal, 32% by gas, 21% by water, 9% by nuclear, and 8% by oil, with 1% from other resources such as wind.

Public power continues to have the largest percentage of its generation from sustainable sources, including hydropower and other renewable fuels, the report notes, and the industry has the largest percentage of ‘zero emission generation’ of any sector. Green power programs are offered by 50% more public utilities than IOUs and nearly twice as many as co ops, and the average pricing premium for the green power from public utilities is 30% less than IOUs and less than co ops.

“Demonstrated progress on GHG intensity reductions through voluntary efforts, implementing a variety of EPA rulemakings, using new clean renewable energy bonds created by the energy bill, maintaining existing zero emission generation capacity, increasing energy efficiency and demand side management, and maximizing use of landfill gas to energy projects will be only a few of the public policy and operational challenges ahead,” says Richardson. Public power systems have a good track record but they will need to remain diligent to maintain their status as environmental leaders and meet their customers' expectations.

The average pricing premium may be misleading, as IOUs offer a number of solar options that are significantly more costly than other green power sources, the report explains. When the median price premium is considered, all three sectors are similar.

“Public power’s position as the electricity industry leader in applying renewable energy technology to power generation has remained essentially unchanged,” it states. “A much higher percentage of public power’s capacity is generated by renewable resources, including wind, solar, geothermal, landfill gas, biomass and hydroelectric power, than the other industry sectors,”and this high percentage is due primarily to hydroelectric capacity, which provides 21% of the green power capacity for public utilities, compared to 6% for IOUs and 2.5% for co ops and non utility generators.

“While public power generates a tremendous amount of renewable capacity in the form of hydroelectric resources, it falls short of the non utility generators in its non hydro renewables,” it concedes. “These non hydro resources include geothermal, photovoltaic, wind, wood or wood waste, refuse and landfill gas; however, the non utility generators sell their power wholesale to public power, IOUs or co ops. Therefore, it is appropriate to consider the net recipient of the power, not just the generator.”

Public power still generates more power from non hydro renewables than either IOUs or co ops.

“While this report shows that public power continues to be a leader in green energy, it also highlights that progress could be made to make public power even greener,” it concludes. “By maximizing the use of the green energy and renewable programs that are already available and supporting the new programs created in the energy bill, such as the Clean Renewable Energy Bond program, public power can continue to show its strong commitment to green energy.”


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