Renewables Sector: Wind Power ~ Colorado WindSource: A Green Pricing Program for Marketing Wind Power As part of an effort to encourage clean and renewable energy, the Land and Water Fund of the Rockies (LAW Fund), a nonprofit organization, has developed a grassroots, community based approach to marketing wind power to residential, commercial/industrial, governmental, municipal, and rural customers in Colorado. The project, known as the Grassroots Campaign for Wind Power, is a joint effort with the Public Service Company of Colorado (PSCo). The project is an example of green pricing—or charging consumers slightly higher prices for an environmentally preferable product. In this case, consumers can purchase wind-generated electricity in blocks of 100 kWh for a $2.50 a month premium. There are also wholesale consumers who buy bulk quantities of wind-generated electricity and sell it to their own customers for a similar premium. By developing innovative and aggressive marketing techniques, the LAW Fund has achieved enormous success in aggregating demand for clean power among Colorado's electricity customers. Results: Approximately 50 MW of wind power is expected to be on line in Colorado by the end of 1999. Of this amount, 25 MW is to be installed for all PSCo customers as part of a regulatory agreement and the remainder is a direct result of green-pricing demand. In total, 350 businesses, 49 public sector groups, 3 wholesale utility companies, and approximately 17,000 residential customers have made a commitment of over $1 million to purchase 49,117 MWh of wind power annually. This level of demand for wind power will reduce emissions of carbon dioxide by 44,100 metric tons (12,030 MTCE*) each year. Annual S02 and NOx emissions will be reduced by 122 metric tons** and 109 metric tons** respectively. The community-based marketing plan has had a significant impact on customer response to green pricing. Boulder County (where the campaign was concentrated) represents only 5% of PSCo's customer base, yet almost 40% of total wind power purchases and 90% of the small business purchases are from Boulder County. Principal Actors: The Land and Water Fund of the Rockies and Public Service Company of Colorado. Additional Information: Rudd Mayer, Green Marketing Program Director, Land and Water Fund of the Rockies, 303-444-1188 ext. 227, rudd@lawfund.org. website: http://www.coareenpower.org. This case study is based on information provided by the Land and Water Fund of the Rockies. ~Original data have been converted from kWh to Metric Tons of Carbon Equivalent (MTCE) using an emission factor of 1.98 lb. C02/kWh (supplied by the Public Service Company of Colorado). **Emission factors for S02 (5.46 Ib/MWH) and NOx (4.89 Ib/MWH) were taken from the Emissions and Generation Integrated Database (E-GRID), EPA/Acid Rain Program. This Business powered by Colorado wind energy. Windsource Wind Power Criteria Greenhouse Supplied Pollutant Gas Savings Electricity Savings 49,117 122 MT** S02 12,028 MTCE* MWh/yr 109 MT** NOx ------- |