'Green Power' called a hoax on California consumers

SUN STAFF AND WIRE REPORTS

Electricity being sold as environmentally friendly in California "is largely a hoax on consumers," an enviromental-consumer group charged.

Public Citizen, which was founded by consumer activist Ralph Nader, said that while customers pay an average of $10 extra per month to get so-called "green electricity." the purchases do little to enhance the environment.

"The 'green' is going mostly into the pockets of marketers," said Joan Claybrook, the organization's president.

The criticism brought a sharp response from California utility officials, as well as some other environmentalists and renewable energy advocates who said Public Citizen's analysis was flawed.

Ralph Cavanagh, an energy specialist at the Natural Resources Defense Council, said demand for renewable energy, indeed, is being spurred by competition and "green" marketing.

"The green markets are, in fact, working and working well. ... Public Citizen is completely out of touch," said Jan Smutny-Jones, executive director of a coalition of renewable energy producers in California.

Nevada Power Co., meantime, said its Green Power Option program spends 87 cents of every dollar on construction of environmentally friendly power production.

But so far the money is just trickling in.

Deliberately slowed in the summer months when customers feel the financial pinch of paying for peak electrical usage, the program has only grown by 100 customers since 300 people signed on when the Green Power Option was introduced in the spring.

But John Chapman, product manager, said his company is gearing to start marketing it again. The 13 cents of every dollar dedicated to administrative and marketing costs buys bill inserts and advertisements to make customers aware of the program, approved in March by the Public Utilities Commission and implemented in May by the utility.

Chapman said ads are placed in publications directed at environmentalists and are allowable under terms of the program.

"In the summer months, we're not really promoting the program," Chapman said. "It's like trying to sell ice to Eskimos. Most people wouldn't want to put any more money on their bills when they're at their highest levels."

When the program began, about 60 percent of those who signed on to the program opted to pay a flat rate ranging from $5 to $20 a month while the other 40 percent chose to round their bill payments up to the nearest $5 increment. The average contribution per participant has been about $6.40 a month.

Shareholders put up the approximately $170,000 needed to build the first array, a flat plate collector installed over the summer at the Desert Research Institute. Now, Nevada Power is looking for another site to build a larger unit.

The collector at the DRI is a solar photovoltaic panel system that converts sunlight to electricity. One 5,200-square-foot unit can produce about 16 kilowatts of power a day, enough to serve about four homes.

Initially, Nevada Power had planned to build a 20-kilowatt array at the DRI. The second unit is expected to supply 24 kilowatts and probably will be built at a community college campus so the educational value of the project can be exploited.

Attorney General Frankie Sue Del Papa said her Consumer Protection staff is auditing the program to ensure no significant portion of the Green Power fund is used for administrative or marketing expenses.

Consumer Advocate Fred Schmidt has been assigned to monitor the program for Del Papa's office.

Meanwhile, Chapman said administrative reports are regularly forwarded to the PUC and the program has been diligent in its efforts to keep finances separate from other Nevada Power revenues. He also hopes revenues will increase.

"The good thing is that very few people are canceling their participation in the program," Chapman said. "We figure that as electricity bills dive, people are more apt to participate."

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