Utility Green Pricing Programs: Design, Implementation, and Consumer Response

Deregulation and environmental differentiation in the electric utility industry

“…In addition to a well-known source, hydroelectricity, they include power from sources as diverse as biomass, wind, solar, geothermal, and landfill gas (United States Department of Energy, 2001). According to Bird, Swezey, and Aabakken (2004), the number of customers participating in utility green pricing programs increased four-fold between 1999 and 2002 to a total of 711,500. Although still relatively small in total number, a continuation at anything like this three-year rate will create sizeable aggregate demand in the next decade.…”

“…Wiser, Bolinger, Holt, and Swezey (2001) There are several options available to customers to pay for green power, including monthly surcharges, kilowatt-hour premiums, and even voluntary contributions. In 2002 per kilowatt-hour premiums ranged from 0.7 ¢/kWh to 17.6 ¢/kWh, with a median of 2.5 ¢/kWh (Bird, Swezey, and Aabakken, 2004). The higher prices charged for green power are attributable to the higher costs faced by providers in securing sources of this power.…”

An examination of voluntary green power programs at U.S. utilities using behavioral science principles

“…In addition, these utilities spent about 20% of the total green power program budget on marketing, with a median of 15%. Bill inserts and earned media are rated highly costeffective, followed by utility newsletters that feature articles about the green power program, direct-mail campaigns, and events (Bird et al, 2004). Experiments show that consistent and repeated communication efforts on behalf of the supplier are necessary in order to maintain consistent participation from electricity customers (Litvine and Wüstenhagen, 2009).…”

Expectations for renewable energy under market restructuring: the U.S. experience

“…Furthermore, only ten programs account for over three-fourths of all green choice customers. Ironically, of the three leading programs, two are sponsored by municipally owned utilities not subject to state restructuring, and only one-fourth of all utilities offering green choice are private IOUs, whether subject to restructuring or not [59].…”