Jan 17 - Roanoke Times & World News


Appalachian Power Co. customers can support the movement toward powering their homes and business with wind and water instead of just coal by spending a few extra dollars each month.

The program, which Appalachian calls "green pricing," won't immediately bring more renewable energy to the grid or an individual customer's home or office. Instead it's targeted at environmentally conscious customers who want to put their money behind the renewable energy movement.

"It certainly encourages us, and in a real way pushes us, to take further steps towards renewable energy," Appalachian spokesman John Shepelwich said. "It shows us and regulators what consumers are willing to do to reach that point."

Currently about 4 percent of the Virginia power grid is from renewable energy sources, Shepelwich said.

The program is based on renewable energy credits, which are environmental commodities that represent proof electricity was generated from an eligible renewable energy resource. These credits are akin to traditional carbon emissions trading programs that promote low-carbon technologies.

Under the green pricing program, customers can purchase renewable energy credits currently held by Appalachian. The company gets its credits from a certified hydro plant in Summersville, W.Va. The credits represent the attributes of renewable energy generated by the plant.

"When the customer buys those [credits], we retire those credits. That means the company doesn't have the credit, so we would either have to build new renewable resources, buy renewable resources or purchase new credits," Shepelwich said. "So it moves us in the direction of having more renewable energy to put into the grid."

Unlike regulations on carbon emissions, there are no current government regulations on renewable energy. But with environmental reforms likely to come under consideration as federal and state governments embrace green initiatives, there is an increased likelihood of regulations encouraging power companies to use renewable energy sources.

Last month, the State Corporation Commission paved the way for Appalachian Power and Dominion Virginia Power to begin offering voluntary renewable energy options for customers. Both programs allow customers the opportunity to purchase renewable energy certificates for some or all of the electricity that they consume, said Ken Schrad, spokesman for the commission.

Appalachian customers can buy 100 kilowatt-hours of renewable energy for $1.50. So for a customer who uses 1,000 kilowatt-hours of electricity a month, they could opt to pay $15 in addition to their regular bill to help support renewable energy.

Appalachian said it does not benefit financially from the program because the green pricing payments will be credited to the company's fuel factor. That means the program could ultimately drive down the cost for all customers, Shepelwich said.

On the Net: www.appalachianpower.com

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