Are Green Power Programs a Scam?
THE TWISTING TURBINES on the Columbia River Gorge ridges were one of the first things my husband and I noticed en route from Baltimore to our new house in Oregon. So a few weeks later, when a hawker at the farmers market urged me—with a $5 token for free veggies and a postcard with pictures of children lounging in front of local windmills—to sign up for a renewable energy program called Blue Sky, I didn't hesitate. For less than an extra $10 a month, my utility, Pacific Power, would supply our home with electricity from wind turbines instead of coal.
But it turns out ditching dirty energy is more complicated than that hawker would have me believe. From the windmill postcard, you'd think my premium would go straight to local projects. Not quite: True, Pacific Power operates one wind farm in Oregon, but that's largely because the state mandates that utilities get 25 percent of their power from renewables by 2025. My well-meaning purchase has little to do with those windmills. Instead, Pacific Power hands my Blue Sky money over to companies that buy renewable energy certificates (RECs) from wind farms, mostly in other states, and other renewable projects like methane-burning landfills. Consumers need to understand that the electricity "is not going from the windmill on the ridge to your toaster," says Pacific Power spokesman Tom Gauntt. Michael Gillenwater, a Princeton researcher who codeveloped the EPA's carbon emissions tracking system, says it's more like donating to a cause. "What you are doing is subsidizing the market for renewable energy."
Pacific Power says our premium "avoided the release of 897 pounds of carbon dioxide emissions into the air...equivalent to not driving 909 miles." But it's hard to verify those numbers, says Stanford professor Michael Wara, who studies carbon markets. "You don't have an overseeing regulator ensuring that the claims made are backed up." Green-e, a third-party certification program, ensures that my RECs come from relatively new projects and aren't double-counted to meet state mandates. But Gillenwater says its "additionality" test isn't thorough enough to prove I paid for an emission reduction that wouldn't have happened anyway.
Experts say that RECs like mine can make renewable projects more profitable, but they play a much smaller role than government subsidies. (Disclosure: My father recently invested in a wood-chip-fueled electricity plant in Florida, and he said RECs sweetened that deal.) Gillenwater says most projects would have produced the energy regardless of whether consumers like me pitched in—in 2008, for example, Pacific Power bought a third of my RECs from two Puget Sound Energy wind farms built in 2005. (A spokesman says the projects' planners didn't count on revenue from residential RECs in their budget.) The remaining two-thirds were purchased from other projects, including a landfill-gas plant in Utah. Only 1 percent came from solar.
RECs, mandates, additionality—my head was spinning like those windmills, which were seeming further away. To make matters worse, in 2008, only 67 percent of my Blue Sky bucks purchased RECs; the remaining 33 percent was spent on staff and publicity. On average, 19 percent of green programs' revenues go to marketing, but at small utilities that percentage is far greater.
Utilities insist that the promotion is necessary, since voluntary green power programs work better when lots of people participate. Nationwide, only about a million customers shell out for green power—with corporations, governments, and universities buying the bulk of it. In 2008, residential customers made up only one-quarter of green power purchases.
So what's a consumer to do? Even with their problems, RECs are "one of the simplest and most direct ways to support renewable technologies," says Jeff Deyette, a senior analyst with the Union of Concerned Scientists. Premiums can provide that extra profit margin to make renewable projects competitive with fossil fuels. And some utilities are experimenting with other models. If I had enrolled in Pacific Power's Blue Sky Block program, for twice what I pay now, 41 percent of my money would have funded local solar arrays and a geothermal test project—and only 25 percent would have gone to overhead. Or instead, I could spend my premium on efficiency upgrades in my new home: sealing leaks, insulating, and replacing drafty windows. It would just take more time and elbow grease than checking a box.
Comments
Investment?
Both of these qualify as proposed solutions and documented results: http://bit.ly/WesternWind and http://bit.ly/30by2020
30% by 2020 on track for 100% by 3030
All the nations of the world must enact a plan at least as effective as controlling flood damage as Scientific American's November 2009 cover story on a plan to achieve 100% wind, water. http://www.scientificamerican.com/article.cfm?id=a-path-to-sustainable-e... That plan should be supplemented with pumped storage hydroelectricity and thermal storage (e.g., http://www.ice-energy.com and/or cryogenic eutectic systems) to reduce the cost of implementation and drastically increase rapidity of implementation by allowing for less fossil and nuclear baseline.
-- from my Davos comments
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Thanks for the link
I think that Green Groups should consolidate their efforts around actual projects. I feel like a great deal of fundraising is done to change policies, support candidates (which is necessary till we get public campaign financing) But, not enough is being done to raise funds to create actual projects.
It seems with all the expertise out there, the high-profile celebrities, the Foundations, etc... Someone needs to coordinate these efforts into self-sustaining projects that provide jobs, training, clean power. Waiting for politicians alone to get it figured out is wasting time and resources. Why can't Ted Turner, Redford, Oprah, Clooney, DiCaprio, Soros, Warren Buffet, Bill Gates etc... contribute to a foundation strictly for implementing green projects. With a large enough, extremely well run Trust, big projects could be get done. They could install solar roofs, insulate, build geo-thermal plants... And any profits go into further installations and projects. Why isn't someone doing this? Or if someone's doing this why haven't I heard about it? Energy for Humanity a green energy version of Habitat for Humanity.
We must get it done with or without the politicians!!!
Follow the money...
Check out the money taken in by the many "green groups." Even though they carry an IRS status of "not for profit," many NFPs make lots of money, pay big salaries, buy homes and cars for their "officers" and highly paid staff, and provide travel to lots of cool places where green conventions are held... like Bali.
Why would I, the President and CEO of CarbonFund.org want to give up my status and benefits? Check out Amory Lovins and his Rocky Mountain Institute.
You can check out the incomes, expenses, salaries, and rewards for any not-for-profit at www.guidestar.com. All non-profits must make public their corporate IRS 990 form...like your IRS 1040 form.
Of course not all non-profits make millions/year, but you might be surprised how many do... So, moving to one big organization might cost me control and money. Why would I do that?
Thanks for the link I will
Thanks for the link I will check it out.
I hate waste, that includes money. That is why I said, "a extremely well run Trust" Believe me, I understand not all nfp's are created equal. The idea was to create something new, one with a focus on DOING, BUILDING. The reason I gave Habitat for Humanity as an example is because they work locally and nationally to find fill the need. There are some things you simply can't accomplish without adequate funding, large scale green energy projects for example a geothermal plant.
If we wait for political change or for-profiteers to change we are sunk. But, if we could do these projects on a non or limited profit basis, then the funds created by energy fees could go into maintaining and then creating new projects. It seems like it would be a self-sustaining or better yet regenerating model. But, this requires large funds up-front. I know Treepeople in LA are doing great things with water preservation. Whose doing these things for renewable energy?
I remember that the Auto
I remember that the Auto companies quickly bought up public transport to lobotomize it. Likewise, when there was going to be a major "Liberal" voice on "Talk Radio" the big companies sabotaged that.
I've looked into these books, and noticed:
1. The DIY crowd can take an old washing machine, rip out it's motor and even use some of the metal housing for part of the blades, and make a working windmill that can generate quite a bit of power.
2. The companies that sell kits charge $25K for similar models that might put out more power, but are almost guaranteed to break down just after the 5 year warranty. In short, more money for less power, despite a "Free" source to exploit depending on wind conditions.
Sorry, but a washing machine is a far more complex electromotive device, esp. handling fluids, a reasonable +- one household windmill setup should be mass-producable at the cost of a washer, one or two at least. A washer already has the power converter setup, variable speeds, overload tolerance, etc.
So, we have to be VERY careful of "GreenWash" and "EcoSuckerExploitation" by companies just out to make a buck. They are forward thinking enough to sabotage competition, but not enough to guess that just maybe there is a danger they are ensuring by doing so.
http://www.youtube.com/watch?
TN's program sucks!
I signed up for Tennessee's green power switch program and like a sucker paid an extra $8/mo to support it for two years. Then I went to the Tennessee Valley Authority website and analyzed their power makeup. Less than 0.03% came from wind power and solar and most all of the solar was PRIVATE installations and they own ONE wind farm. So the $8 contribution was to their profit only and I stopped my contribution in disgust.
Most green programs are
Most green programs are financed by government and government, in general, is a scam. If you want to give money to green programs, find a real one llike this: http://www.openfarmtech.org/index.php/Main_Page
that can turn your dollars into green realities. This one, Open Source Ecology, is suitable for all because the environmental technologies they develop are open source, meaning plans and directions become available to everyone on the Internet. Or perhaps you can find a good local group. Just make it real. Make sure you have a relationship with the green developer who will be spending your money.
I live in Fairfield County,
I live in Fairfield County, CT, where we have a free, weekly "alternative" newspaper that features, among other things, a community bulletin board for postings of local events of interest to the readers. Some 10 or more years ago I saw an announcement for a "green energy" tour that included numerous projects in towns close to me. We had purchased a 60-year old cape that needed some major renovation, and I was actively researching "green" improvements and upgrades. One of the tour sites I visited was the home of a local architect who specialized in energy conserving building methods such as low-e, argon-filled, double-hung windows; solar panels; heat pumps; environmentally friendly construction materials, etc, etc. And he had a card table displaying free literature and brochures. One brochure that caught my eye was for Green Mountain Power (I hope I have remembered the name correctly, and am not confusing it with the legitimate Vermont energy utility) that said we could sign-up for their clean energy and opt-out of Connecticut Light & Power, which operates some of the dirtiest coal-fired plants in the Northeast. It would cost only a modest amount more than our current CL&P rate, and solve our planet's problems (OK, I exaggerate, but you can imagine how righteous were the brochure's claims). I like Vermont, I have family up there, I was thrilled when Senator Jim Jeffords abandoned the Bush Republican party to become an independent (remember, I live in Connecticut and we have Joe Lieberman--but that's another story). I thought about signing up with this Green Mountain Power outfit. Fortunately, first I looked a little deeper.
It turned out GMP was a mailbox drop in Vermont. They actually were a Texas-based business, and were investigated in Vermont for fraudulent activity. And here's the real kicker: the guys running the scam were the same guys who ran the swiftboat campaign smearing John Kerry. Remember them? How different, and no doubt greener, the planet would have been without the Bush regime.
I think we should be wary, very wary, of these proposed claims to fix things. Not all are scams, of course; some are just the result of inadequate thinking. How many acres of tropical rain forest have been cleared to make way for the planting of "biofuel" species, and with what disastrous consequence?
Own Research?
I would be interested to hear abothow you found out what your premiums go to. I'm a Blue Sky enrollee in Rocky Mountain Power and I would love to find out exactly where the extra money is going to. Any help would be awesome. Thanks!
America 101
Welcome to America people. NOTHING good gets done without profit for those in charge.
The only reason progress takes so long in this country is that it takes them at least a year to figure out how to keep the money in the same hands.
Sorry, but the American spirit of innovation has been co-opted by the real leaders of our economy. And, that ain't US.
tone of article and headline
I can't stand it in the rest of the media and I certainly expect better from Mother Jones than leading articles with the negative and burying the positive in the last paragraph.
If someone reads only the headline or the first couple of paragraphs, they'll leave the article thinking that green energy programs are a scam. While they might not be the best solution in the long run, to scare people away from them wholesale is irresponsible journalism.
Mother Jones is a publication I depend on for BALANCED and unbiased journalism. If you start writing for the sensationalism in headlines and article leads, you will be no better than the rest of the garbage out there.
Ya gotta think big and act big on this energy problem
We burn 20 million barrels of oil a day in this country. You want to change the effect Oil is having on our climate? on our country? on our world?
Something like 70 to 80% of this oil is burned in transportation. We need new liquid fuels, new or modified engines, and new attitudes about travel.
This is a dead serious problem that has the potential to change the political power base of our entire planet. Peak Oil is approaching and if you're not familiar with the theory do some research online... you will be shocked at the situation we all are in.
http://seekingalpha.com/article/182989-economist-jeff-rubin-talks-tough-...
Mr. Obama needs our voices in his ear to muster the political clout. Use your money to send your views to every elected politician.
Mr. Obama, think big on Energy.
"Green" certificates
Actually, if you just view those monthly payments as just a 'tax on stupidity' you all would be far closer to the truth.
green huh?
lol at the comment above me. "Tax on stupidity" = classic.
Personally, I think that not enough is being done to raise funds to create actual projects - too much rev generation and not enough actual "doing." Green companies need to step it up. Less talk, more action.
http://www.muffinrecept.com/tag/muffin-recept/
what a great post, i really like it.
Alternative Fuel
To be able to reduce carbon emissions, we should be able to reduce use of fossil fuels and switch to the use of renewable energy such as electric cars. But it seems that hope is still far from expectations because there are still many people who use fossil fuels.
The GreenPower Accreditation
The GreenPower Accreditation program has actually been around for more than ten years now and There are a few chemical engineering solutions to this problem.... history of argan oil
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