May 5, 2008 News Media Release

Austin Energy® GreenChoice #1 in the Nation

Austin Energy GreenChoice® remains the #1 green power program in the country according to the latest data compiled by the Department of Energy. GreenChoice outsold 800 other utility-sponsored green power programs in 2007 for the sixth year in a row including second place Portland General Electric, which has twice as many customers, and third place PacifiCorp which has four times the customers.

GreenChoice sales during 2007 were 578-million kilowatt-hours (kWh). Today Austin Energy green power sales top 743-million kWh built on a new supply of wind-generated power that went on sale last January. The key to this success story is that Austin Energy passes on to GreenChoice subscribers, the benefit of fixed long-term pricing on the purchase of wind-generated electricity.

“We replace the fuel charge on the electric bill of a GreenChoice subscriber with a green power charge that represents the cost of the prevailing wind contract,” says Austin Energy General Manager Roger Duncan. “The green power charge stays fixed for the life of that wind contract (10-15 years) while the fuel charge can go up or down, depending on the cost of natural gas and other fuels used by Austin Energy power plants.”

This means that unless Austin Energy increases the other component of its electric bill – the energy charge (which recovers the cost of power plants, personnel and the electric system), a GreenChoice subscriber will not see their electric rates change over the life of that wind contract. That fixed cost approach has already paid off for subscribers.

Since the GreenChoice program began in 2001, Austin Energy has contracted for five batches of wind energy. As each batch sold out, a contract was issued for another batch. In every instance, customers subscribing to a batch paid a green power charge that was a little higher than the prevailing fuel charge. Today however, every subscriber of the first four batches is paying less than the current fuel charge of 3.65 cents/kWh:

Businesses, in particular, recognize the potential value of long-term fixed green power pricing. Some 514 business are GreenChoice subscribers with 428 signed up for 100% of their annual electric usage. This gives Austin more 100% powered businesses than any city in the country. It also means that 84% of GreenChoice power has been purchased by businesses – some of which are national leaders in the procurement of renewable energy.

Advanced Micro Devices (AMD) is among the top 25 businesses nationwide in the purchase of green power at 68.7 million kWh a year. The Austin Independent School District at 60.7 million kWh buys more green power than any other school district in the nation and Concordia University, purchasing 6.3 million kWh of green power annually, was the first college in the country to subscribe to green power for 100% of annual power usage.

Austin Energy has a goal that by 2020, some 30 percent of all power sold by the utility will come from renewable resources. During 2008 renewables are expected to account for about 8% of Austin Energy electricity sales. However, the utility is in the process of doubling its inventory of wind-generated power and during 2009, renewables are expected to provide over12% of the power sold by the utility. At that point Austin Energy will have under contract the output of 439.2 megawatts of wind turbines located at six West Texas wind farms:

In addition to wind resources, Austin Energy GreenChoice receives about 5% of its green energy from landfill methane gas-powered generation; small generating units located near retired landfills. Methane gas released by decaying garbage and collected through a system of piping powers the on-site generators. Austin Energy contracts for 11 MW of power from two landfills combined, one located outside Austin, the other located near San Antonio.

Austin Energy is also investigating options for adding commercial-sized solar facilities to its renewable energy portfolio. The utility has leased 438 acres of state-owned land in Reeves county and is exploring sites in and around Austin as possible locations for large-scale solar projects. The utility has a goal to install 100 MW of solar capacity as part of its overall goal of 30% renewables by 2020

For more information, contact Ed Clark, Public Information.
Phone: (512) 322-6514
Pager: (512) 802-2000