May 27 - Knight Ridder/Tribune Business News - Steven Oberbeck The Salt Lake Tribune

Utah Power says it has plenty of "green energy" to sell under its Blue Sky program, but it nevertheless is looking for more of the environmental credits created when producers generate electricity using wind-driven turbines.

The utility this week issued a request to Utah wind-power producers offering to buy their "green tag credits" as a way to help foster the continued development of renewable energy in the state, Utah Power spokesman Dave Eskelsen said.

"More than 17,000 of our residential and business customers in Utah are participating in our Blue Sky program," he said. "And with that kind of acceptance, we want to do everything we can to support and promote the generation of more renewable energy in the state."

Under Utah Power's Blue Sky program, consumers pay a premium for the electricity they use -- $1.95 for each 100 kilowatt hours -- with the company promising it will put a similar amount of electricity generated from wind farms or other renewable resources onto its distribution grid. The typical Utah home uses approximately 600 kilowatt hours of electricity a month.

Producing wind-generated electricity costs about 25 percent more than power generated at a coal-fired plant. To make wind power more economical to generate, producers independently may sell their "green tag credits," which represent the favorable environmental benefits of generating power from renewable resources versus coal or natural gas.

When MidAmerican Energy purchased Utah Power earlier this year, it promised to increase its commitment to renewable energy generation in the state. Its offer to purchase additional credits is a sign it is fulfilling that promise, Eskelsen said.

Utah Clean Energy executive director Sarah Wright said Utah Power may find that most green tag credits will be offered by producers whose projects are nearing completion. If that is the case, then Utah Power's purchase of credits will help those producers raise additional funds needed to complete their projects, she said.

Green tag credits, however, are constantly created. Each tag represents one megawatt hour of power. And both individuals and companies can buy the credits.

The price of green tag credits vary, depending upon the cost individual producers must bear to generate electricity. As a general rule, green tags trade at a level that allows wind-power producers to make a profit from the electricity they generate.

Eskelsen noted that Utah Power's Blue Sky program is self-supporting, so the level of funding the company has for future green tag purchases depends on the number of Utahns in the program.

 

BLUE SKY BOOSTERS:

--To participate in Utah Power's Blue Sky program, consumers may call 800-842-8458 or sign up on the utility's Web site, http://www.utahpower.com.

--E-mails about the program may be sent to bluesky@pacificorp.com

--Utah Power also has a "net metering" option for customers interested in generating all or a portion of their electricity needs from small-scale solar, wind or other renewable generating equipment.

--The utility's Web site also has information on solar power from photovoltaic systems.