Trends in Utility Green Pricing Programs (2003)

Abstract

Utilities first began offering consumers a choice of purchasing electricity generated from renewable energy sources in the early 1990s. Since then, the number of U.S. utilities offering green pricing programs has steadily grown. Today, more than 500 utilities in regulated electricity markets--or about 16% of all utilities nationally--offer their customers green power options. Because some of these utilities offer programs in conjunction with cooperative associations or other public power entities, the number of distinct programs is slightly more than 100. Through these programs, more than 33 million customers spanning 34 states have the ability to purchase renewable energy to meet some portion or all of their electricity needs, or make contributions to support the development of renewable energy resources. Typically, customers must pay a premium above standard electricity rates for this service. This report presents year-end 2003 data on utility green pricing programs, and examines trends in consumer response and program implementation over time. The data provided in this report can be used by utilities as benchmarks by which to gauge the success of their green power programs.