The Grassroots Are Greener: Footnotes

The Grassroots are Greener:
A Community-Based Approach to Marketing Green Power

Footnotes

1 Rudd Mayer and Eric Blank are Green Marketing Program Director, and Energy Project Director, at the Land and Water Fund of the Rockies in Boulder, CO; Blair Swezey is Principal Policy Advisor at the National Renewable Energy Laboratory in Golden, CO. Contact Rudd Mayer at 303-444-1188 x227 or via e-mail at rudd@lawfund.org —return—

2 The authors would like to thank Adam Serchuk, Ed Holt, Ryan Wiser, Carl Weinberg, Jeff Ackermann, Chris Schoenherr, Alan Miller, Nancy Rader and Jean Wilson for their valuable comments on and suggestions for this paper. The views expressed are the authors', and do not necessarily reflect the opinions of REPP, its Board of Directors or the reviewers. —return—

3 See Colorado Public Utilities Commission (PUC) Decision No. C96-1235, Docket No. 95A-531EG, August 23, 1996, p. 71. —return—

4 See Docket No. 95A-531EG, Merger of PSCo with Southwest Public Service Co., Stipulation and Agreement, July 1, 1996, pp. 22- 23 (later approved by the Public Utilities Commission), committing PSCo to file a tariff by September 1996 with the PUC implementing a green pricing program. —return—

5 Conversation with Steve Dayney, former renewable energy project manager, January 14, 1999, and comments by Wayne Brunetti, PSCo COO, in the context of the Colorado Governor's Task Force on Renewable Resources, Fall 1996. —return—

6 Research has shown there is a gap between the customer numbers predicted by utility market research and actual sign-ups for utility green pricing programs. One reason for this gap is that most new products are heavily marketed and promoted to inform customers of the product's presence and benefits. Utilities have not done this with green pricing products. E. Holt, Green Pricing Resource Guide (Gardiner, ME: The Regulatory Assistance Project, 1997), pp. 13-36. Available from RAP at (202) 293-2833. —return—

7 See Colorado PUC Decision No. C97-203, Docket No. 96A-401E, Application of PSCo for Authority to Implement a Renewable Energy Service Adjustment, February 19, 1997 (approving a consensus stipulation developed by the parties). —return—

8 Rudd Mayer, Eric Blank, Randy Udall, and John Nielsen, Promoting Renewable Energy in a Market Environment: A Community-Based Approach for Aggregating Green Demand, U.S. DOE/LAW Fund Report, May 1997. Available from the LAW Fund at (303) 444-1188 ext 231, or from the General Marketing section of the Library. —return—

9 Chris Schoenherr, who runs the highly successful green pricing program Energy for Tomorrow at Wisconsin Electric, says their experience is that environmental group endorsement is one of the key factors consumers use in making a buying decision. Electronic communication, March 1999. —return—

10 Conversation with Rich Ferguson, Sierra Club representative, spring 1997. —return—

11 Presentation by Rick Thompson, PSCo, March 18, 1997. —return—

12 See Executive Order, B005 96, Creating the Renewable Energy Task Force, signed June 7, 1996. —return—

13 Other utilities offering wind power at that time were Fort Collins Utilities, Colorado Springs Utilities, and Holy Cross Electric Association. —return—

14 Conversation with Jeff Ackermann, Windsource product developer, PSCo, July 1997. —return—

15 See Edward A. Holt, Green Power for Business: Good News from Traverse City, REPP Research Report (Washington, DC: July 1997). —return—

16 For a discussion of corporate environmental responsibility and green companies, see J. Ottman, Green Marketing: Opportunity for Innovation (Chicago, IL: NTC Business Books, 1998), pp. 61–86. —return—

17 Ibid., pp. 205–07. —return—

18 See Denver Post, August 22, 1997. —return—

19 Ottman, op. cit. note 15, pp. 15–16 (the role of corporate environment and social responsibility in consumer's purchasing decisions). —return—

20 Phone conversation with Steve VanderMeer, Fort Collins Utilities, November 1996. —return—

21 Direct mail consultants consider a 1% response rate for direct mail good, according to Alexandra H. Mayer, marketing consultant, October 1996. —return—

22 These total emission reductions are based on average ton per GWh emission rates implicitly contained in PSCo's 1996 Draft Integrated Resource Plan (IRP), October 1996, p. 111. Given that total annual carbon emissions in Colorado were in excess of 30 million tons in 1990 (and have subsequently increased substantially), the savings from the wind investments can be viewed only as a small but somewhat significant first step. —return—

23 See Docket No. 997A-297E, PSCo IRP Proceeding Before the Colorado Public Utilities Commission, Stipulation and Settlement Agreement (approved in PUC Decision No. C98-1042 adopted October 2, 1998), p.15. —return—

24 PSCo is planning to acquire this wind resource through a purchase power contract. The costs of this contract will be included a s an expense in the utility's revenue requirement. —return—

25 Through the green pricing program, PSCo's customers stepped forward to pay more to purchase wind power. In the course of the IRP proceeding, the LAW Fund and other advocates suggested that PSCo and the regulated system should exercise similar leadership, as these customers are making a real and significant commitment to wind power. This argument seems to have resonated with the utility. —return—

26 This PSCo IRP case before the Colorado PUC was resolved through a comprehensive settlement that addressed all disputed issues. Prior to the settlement, it was highly uncertain whether or not the Colorado PUC would order PSCo to acquire a fixed amount of wind, given strong utility objections. —return—

27 However, any subsequent commitments received from the 600 pending customers would reduce the marketing cost accordingly. —return—

28 Ryan Wiser et al, Green Power Marketing in Retail Competition: An Early Assessment, Topical Issues Brief (Golden, CO: National Renewable Energy Laboratory, February 1999). —return—

29 Eric Lombardi, EcoCycle, remarks at the Boulder Windsource press conference, September 30, 1997. —return—

30 See Green Buyers Beware: A Critical Review of Green Electricity Products, Public Citizen's report on green marketing in California, November 1998. —return—

31 Ed Smeloff, Pace University Energy Project, energy advocates listserve, December 3, 1998.—return—

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