Abstract

At least one common thread runs through both state and federal discussions of electric industry restructuring; instituting a renewable energy portfolio. Retail-wheeling pilot projects have revealed that a statistically significant percentage of customers will choose to pay a premium price for green power. In one pilot program in Massachusetts, 31% of residential customers selected green power. Customer participation in Phoenix-based Arizona Public Service Co.`s Solar Partners program has been stronger than anticipated, prompting the utility to increase the size of a photovoltaic (PV) plant to be built in Flagstaff from 41 to 81 kW. According to a green pricing survey of electric customers conducted in west-central Ohio, a majority are willing to pay more for renewable energy, although that willingness declines as the price increases. Two thirds of respondents said they would be willing to pay $5/month above their current bill to reap the environmental benefits of producing electricity from renewables. Political debates are shaping up across the country to define what will constitute an acceptable renewable option.

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