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Lawmaker focuses on renewable energy
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Price stability | 6:03 a.m. Jan. 31, 2008
The real benefit of renewable energy, outside of being clean, is that it is
price stable. The challenge is getting monopoly utilities to pass that price
stability onto consumers. Currently, Rocky Mountain Power prices its renewables
to "good hearted" consumers at a price premium over their standard,
dirty fossil-fuel rate, sending the wrong price signal to consumers that
renewables are always more expensive than traditional coal. Other utilities
have different pricing policies. For example, Austin Energy (in Texas) has sold
wind power for a slight premium over its standard fossil fuel rate that is
locked in for 10 years! Imagine no price increases on your energy bill for a
decade! Early subscribers of Austin's wind program are actually paying
less for their electricity than other customers who stayed with the volatile
standard fossil-fuel rate (who have experienced the roller coaster ride of
natural gas prices). Austin's pricing has been so successful that there
was a long waiting list to subscribe to wind power, mostly from businesses who
want long-term cost stability, and the utility had to resort to a lottery system
to select new customers. Customers should demand that Rocky Mountain Power do a
similar pricing strategy to encourage demand.
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