The House Waxman-Markey bill has drawn criticism for being too friendly to utility companies, who would be handed a large percentage of the carbon credit allowances created. That criticism has come not only from environmental advocates who are concerned that free allowances will undermine the value of a cap, but also from other business interests who see the credits creating a potential windfall for utilities - especially those who already generate much of their power from cleaner fuels.

The Chamber’s opposition to Waxman-Markey is understandable when you consider that they represent a broad cross-section of business sectors, including many that did not fare as well in the negotiations as Waxman-Markey took shape. For their part, the Chamber has responded to the recent defections by noting that it only opposes the House bill itself, and is not opposed to the idea of climate-change legislation. According to their COO David Chavern, “Congress should do everything it can to promote and incentivize technology development and other policies that allow us to control carbon in ways that don’t trash the economy.” The fact that the Chamber’s site was unavailable on the morning of Exelon’s announcement indicates that the public may not be ready for so nuanced a position.

Might the departures be a harbinger of movement away from the Chamber across the entire utility sector? Or, should they be viewed as evidence of a fracture within the industry? Utilities that rely more heavily on coal and other dirty fuels share the Chamber’s concerns about cap-and-trade’s impact on the cost of their power. By contrast, PG&E, PNM, Exelon and others that are already invested heavily in cleaner fuels can afford to appear green. It may even be profitable.

The Chamber is in the news right now, but the place to watch as the Senate picks up debate of its own bill will be the utility trade group, Edison Electric Institute, which represents the investor-owned companies on both signs of the fuel type divide. EEI has already been engaging Senate leaders in a way that tries to split the difference for its membership: they are not running from Waxman-Markey, but they have some suggestions for improvement on the Senate side.

This dust-up may be all the more costly for utilities, their trade group and the Chamber if long-term discord is fomented for naught. The Senate will need 60 votes to get a bill. It will be tough to get there as Democrats hailing from industrial and agricultural states have the 1993 BTU Tax debacle in their memories and a 2010 election year in their sights. And, with political fallout that could be even more dramatic than the squabbles that are now unfolding in the business community, there may not be a Senate climate bill in 2009. Either way, the utility industry will be left to mend fences. The questions now are whose fences, and how many?

Safety concerns are going to start being an issue with alternative energy installations. With any new technology come unanticipated concerns, as that system leaves the ideal world of the drawing board (or the computer simulation) and enters the real world.  We are already well acquainted with the concerns about wind turbines and birds (for the most part, the issue of bird strikes is not that great compared to other man-made hazards for birds, and is more than offset by the benefits to birds (and all other living creatures) from using a renewable power generation. But there will also be life-safety issues around any electricity generating system, particularly as they become more distributed and widespread.

What kinds of safety issues will be faced as part of other alternative energy systems?

Read more of this story »

The utilities involved have more than 20 million customers and cover 22 states: Con Edison (ED), Edison International (EIX), Great Plains Energy (GXP), Duke Energy (DUK), Pepco Holdings (POM), PNM Resources (PNM), Sierra Pacific Resources (SRP), and Xcel Energy (XEL). Up until now, the only utilities that want to grow profits through energy efficiency investments have been in California.

The move by these utilities comes at a time when demand is growing, concerns and lawsuits about emissions abound, and global warming is a hot political and business issue.

Energy efficiency is the cheapest and fastest way to cut global warming emissions, and the utilities agree: ” …we share a common belief that energy efficiency is the greatest untapped resource in addressing global climate change in the near-term.” Here are the major elements of their plan:

• Boost investments in energy efficiency projects to $1.5 billion per year in the next 10 years.

• Create a national institute for electric efficiency. The Energy Efficiency Institute will work on regulatory policy models, notably how utilities can make money when customers use less energy rather than more. It will be formed within the Edison Electric Institute, which represents the nation’s investor-owned utilities.

Innovation and multi-party collaboration will be needed to craft policies that allow companies to profit from investing in efficiency. Utilities could profit from replacing inefficient air conditioners and light bulbs, for instance. Great Plains hopes to get legislation passed in Kansas and Missouri that would allow them to earn a higher return on efficiency investments than what would be made investing in traditional power plants. The utility could install smart electricity meters that tell customers when electricity prices are highest and even allows the utility to adjust the operations of appliances in customer homes. Michael Chesser, Chairman and CEO of Great Plains, said that energy efficiency, “with the right incentives,” could take care of all the growth in electricity demand between 2010 and 2017.

The business community was also interested by the announcement. The Dow Jones Wire commented:

It’s a sign of how quickly energy efficiency has taken center stage in the utility industry’s growth plans. Even in states where rates are low, power companies increasingly see efficiency investments as an inexpensive way to satisfy growing electricity demand and boost revenue without provoking the public opposition that usually dogs proposals for new power plants and transmission lines.

The utilities are working in partnership with the Clinton Global Initiative, backed by former President Bill Clinton’s foundation.

Cross posted on Maria Energia

Kansas City Star
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How it works. When you sign up to a green power program, you are supporting your utility company in purchasing power generated from renewable sources, such as wind, solar or low-impact hydropower sources. Other renewable sources include methane or captured landfill gas, geothermal, and biomass.

Due to existing transmission infrastructure, the electricity coming over the lines directly into your home is not guaranteed to be power generated from these renewable sources. However, the more people that sign up for green power options, the more green power the utility company will have to purchase.

What you get. The details of each program are different. Many offer renewable power options at one to two cents more per kilowatt hour, and all offer incentives that make it beneficial or attractive for the consumer. GO’s Maria Surma Manka wrote about Xcel Energy’s Windsource program in Minnesota, and GO’s Philip Proefrock discussed his green power options southeast Michigan. In New York, I’ve signed up for Consolidated Edison’s Solutions program, which includes an annual rebate, no sales tax, and the option of a fixed monthly rate (so I pay the same amount every month for my bill, no matter what my actual usage is). Of course you’ll also get the satisfaction knowing that your green power purchase is helping to further the availability of renewable energy sources.

Check with your electricity provider or the U.S. Department of Energy website to find out if your local utility offers a green power program. Before you sign up, learn more about the details of the program, and find out where the renewable energy sources come from.

More from Green Options:

The Best Green Power Programs
Buy Renewable Energy for Yourself
Real Renewable Energy vs. Renewable Energy Credits
The Who’s Who of Green Power Purchasers