Say it loud, say it proud.

by Anne-Lise Breuning, Tenant, NoHo
2004-09-01

Growing up in a solar house in New Mexico made me a strong believer in green power. So I was thrilled when I read on my ConEdison bill “you have the power to make a difference…. Choose green power.”

But don’t bother calling the toll free number listed, it took 3 months for the information to arrive. You don’t have to wait— just go online to www.askpsc.com, the NY State Public Service Commission website to get the details.

When I switched in April 2004, as a resident in Manhattan, I only had one option for green power, ConEd Solutions. Now there is also a second option, 1st Rochdale Coop, which started offering green power this month.

ConEd Solutions and 1st Rochdale Coop are Energy Service Companies. ESCOs were created after NY State deregulated the electricity market. We can now choose an ESCO that will by buy power from green power plants. Although some ECSOs say they might start, only a fraction supports green power. Also ConEd Solutions and 1st Rochdale Coop do not exclusively use green power.

Since ConEdison owns the power grid in NYC, it will always be the utility used to deliver the electricity no matter where you buy the power. The ConEdison delivery fee and my ConEd Solutions charge will be on the same bill. Also note that the power that is directed to my apartment was not necessarily generated from green power sources, BUT I have paid ConEd Solutions to buy more green power to add to the mix.

ConEd Solutions charges 12.2 cents/KWH. Their green power is 25% wind, 75% hydro. (No monthly fee, taxes not included, there is a 3$ cancellation charge if you break the required year long contract.) There is also a 25$ rebate after 3 months. 1-888-320-8991 www.conedsolutions.com

I also spoke with Jackie Conkin at 1st Rochdale Cooperative Group. 212-673-3900 ex 262. She was really excited about green power and said that 1st Rochdale supports energy conservation, as well as, green power. Price is fixed if you use under 400KWH a month -14.4 cents total (12.9/KWH plus 1.5 cent charge) Power is a mix of 30% low hydro, 30% bio, 40% wind. www.1strochdalenyc.coop/cleanerElectricity.html or (1-877-624-3253)

Another thing that I found in this switcharoo was the new “environmental disclosure label”. Twice a year all electricity suppliers will send all NY State consumers a list of the sources of power used to generate their electricity (coal, natural gas, nuclear, hydro etc.) The label also lists the relative air emissions of Sulfur Dioxide, Nitrogen Oxides and Carbon Dioxide they created compared to other suppliers in NY. You can see a sample label at www.askpsc.com.

So far it was an easy switch over but I have yet to receive my first bill. I called my father in New Mexico to tell him the good news and he replied, “those bastards! Charging you more for green power, just goes straight in their pockets. They should be charging more for traditional power.” He did admit, however, that it was step in the right direction.

GreenHomeNYC Feature Article
by Dan Harris

dharris@GreenHomeNYC.org
March 2003

“Green Power” is delightful phrase, full of promise and hope for the future — as if we will plug our appliances into a smiling oak tree with a rainbow glistening in the background. The reality of purchasing Green Power, meaning electricity generated solely from renewable sources, is significantly less glamorous than this vision but a new revolution is fast approaching for energy consumers. Energy marketers are waking up to the fact that a majority of electrical customers, up to 75% in some surveys, are willing to pay a little extra money on their monthly bill to ensure that their electricity is generated by renewable sources. Currently in New York City the options for purchasing Green Power are few and legislators are still mulling over the rules to define the market but soon a bevy of new options will be available to consumers. Among the few programs that are available now there are two different types, Green Power purchased through an electricity reseller, and Green Power/Wind Power Certificates purchased from a Green Power marketing company.

Green Power is a stepchild of energy deregulation of which there has been much news especially after what happened in California in the summer of 2000. It is necessary to understand deregulation to fully understand the nature of Green Power, but first lets look at the options that do exist for retail customers in the New York City area to buy Green Power and Green Power/Wind Power Certificates.

Option 1: Purchasing Green Power for residential customers of Consolidated Edison in New York City

Only one company is available at the current time. A subsidiary of Consolidated Edison, called Consolidated Edison Solutions, is offering electricity produced by renewable energy sources. Service is available by contacting ConEd Solutions at 1-888-320-8991. In return for a higher price per kWh they will guarantee to purchase electricity from these renewable sources in the amount that is used on your meter.

The electricity supplied is 50% wind power and 50% run-of-the-river hydroelectric power. Run-of-the-river (ROTR) hydro means a hydroelectric project that does not interfere significantly with the flow of the river. This does not mean that you are directly using electricity from these sources because all electricity is drawn from a general pool of electricity called “the grid”. It really means that Con Ed Solutions will guarantee to pay the company that owns the wind farm or ROTR project for electricity in the amount of your usage.

I called Consolidated Edison Solutions at the number above and they offered to switch me to their residential Green Power plan for 11.3 cents per kWh, compared to the rate on my current bill of 9.8 cents per kWh. The new rate would be reflected in the next meter reading and billing cycle. The cost of distribution is added by the utility, Con Ed, to this new base electricity price. Under this arrangement I calculated that my bill for this month would change from $56.14 to $61.05. This amount would be charged in two bills that would arrive monthly in the same envelope. Con Ed would present one bill for distribution charges of the electricity, as well as gas usage like a normal Con Ed energy bill, and contained in the same envelope would be another bill from Con Ed Solutions for the supply of the electricity.

More information is available at conedsolutions.com

Option 2: Purchasing Green Power/Wind Power Certificates for residential customers of Consolidated Edison in New York City

A Green Power or Wind Power Certificate is a product offered by a Green Power marketing company. The purpose is to direct funds towards new development of renewable energy generation sources. In this case you are not actually purchasing electrical service. What you are doing is voluntarily paying a premium on your electrical usage that will go to companies that own and develop renewable energy projects in your state. Essentially you are sending a donation to these companies, though the certificate marketer will call it “purchasing the environmental benefit of the electrical generation”. Did you get that? Apparently there are two things created when renewable electrical energy is generated, one is the actual electricity, and the other is the environmental benefit of displacing another form of non-renewable electricity. The marketer touts the certificate as a purchase of this environmental benefit. This is a definition that is necessary to define the nature of the product.

Consequently there is no limit to the amount of green certificates that one can buy (buying enough to cover your monthly electricity usage is simply a guideline). There are three companies with products in New York State at the current time though only two, Community Energy Inc., communityenergy.biz, and Sterling Planet, sterlingplanet.com, offer certificates for customers of Consolidated Edison. Community Energy Inc. offered me three blocks of 100 kWh for a premium of $7.50 per month. (I based this on my usage this month of 296 kWh). Sterling Planet offered me the option of three premiums based on a percentage of my average electrical bill, 20%, 15%, and 10%. (Again using my current bill of $56.14 my premium options are $11.23, $8.42, $5.61).

This premium is paid to the energy certificate company as a monthly bill, separate from the utility bill. At the current time certificates are not in any way involved with Con Ed. In the future these companies will have direct partnerships with Con Ed so that the premium would just show up on your monthly utility bill. The utility Niagara Mohawk in upstate New York has a partnership with all three Green Power marketers in the state.

The definition of Green Power is electricity produced solely by renewable sources that can include any combination of wind, biomass, hydroelectric (both conventional and Run-of-the-river), geothermal, etc. All electricity sources including Green Power sources supply electricity to a grid system that supplies consumers in its coverage region. In order to understand why green power can now be purchased directly it is necessary to understand the deregulation of the electricity market.

Traditionally, a regulated utility, such as Con Ed, or in upstate New York, Mohawk Energy, generated most of the electricity and distributed it by the grid system to consumers at prices that were regulated by the state. Though these two are the largest utilities in New York there are actually 47 separate utilities operating in the state. Since the passage of the Energy Policy Act in 1992 twenty-four states and the District of Columbia have either enacted legislation or issued a regulatory order to implement retail power deregulation. These states have deregulated the electricity supply market and permit new companies to build electrical generation facilities and market their power directly to consumers. The price of electricity is then allowed to fluctuate with the influence of supply and demand. Some of these new companies may not even have electrical generation facilities but may buy and sell power on speculation in a new market similar to a commodities market. This new company is called an ESCO and there are approximately 22 active ESCOs in New York State.

In a deregulated market the same grid system is used to distribute the electricity and the original utility companies still govern that distribution as well as the upkeep of infrastructure and customer service. Electricity that is purchased from an ESCO is still subject to a distribution charge by the original utility company though in many cases the monthly cost of electricity can be reduced for a consumer by using an ESCO that tailors a specific fixed-price contract for that consumer. In this way ESCOs have “products” or contracted electricity that a residential or commercial customer may purchase for a set price.

Green Power can be marketed to consumers in the same manner by an ESCO as simply another product. In the example above Con Ed Solutions is legally an ESCO though it is a subsidiary of Con Ed, the utility. Con Ed Solutions has other products besides Green Power that it uses to generate revenue by taking advantage of supply and demand price disparities in the deregulated electricity market.

The deregulation of the market is less important to Green Power certificate marketers since the purchase of certificates does not represent an electrical service contract. Though deregulation facilitates the ability of Green Power certificate marketers and the utilities to work together.

There is an opportunity for residents of New York City to assume responsibility for the source of their electricity. When you purchase the products described above you are actively encouraging the construction of new renewable energy sources. More and more wind farms, tidal projects, photovoltaic projects, and a host of others are being planned at the current time and this development should be supported by consumers who care about the energy future of New York and can pay a little extra on their monthly bill. Renewable energy sources face difficulty breaking into a deregulated market due to high startup costs compared to well-established traditional polluting sources and so financial encouragement by a concerned public goes a long way to support the increased costs. Most importantly it sends a message to financiers and government that you are concerned and want change.

By Josh Radoff, GreenHomeNYC

*****Please note: Some information has changed since this article was written.
1st Rochdale stopped offering Green Power in July 2004. The only source for New Yorkers (other than buying green credits directly) is now Con Ed Solutions.*****

In New York City, electricity is a lot like Chinese food. It’s ubiquitous, available for delivery right to your home, and is made with lots and lots of oil. But unlike a good Chinese restaurant, Con Edison, the electricity provider for almost all of New York City, has a menu with only one choice. And until recently, if you didn’t like that choice, well that was just too bad. Theirs was the only gig in town. But the days of one-electron-fits-all have happily come to an end. Now anyone who thinks that their electricity should come from sources that don’t pollute, don’t come from the Middle East, don’t contribute to climate change, and don’t double as weapons of mass destruction, can pick up the phone and order a new utility product called “Green Power.”

Green power is electricity generated from pollution free, renewable energy, like wind, solar, and small scale, “run of the river” (i.e. no dams) hydropower. The two companies now offering green power to customers in the Con Ed service area are ConEdison Solutions (www.conedsolutions.com), a subsidiary its namesake, which began offering green power back in January of 2003, and 1st Rochdale Cooperative of New York City (www.1strochdalenyc.net), which launched its green power program on Earth Day, 2004.

Con Ed’s electricity comes from a mix of sources including the oil and gas burning plants that line the East River, the Indian Point nuclear plant located 35 miles up the Hudson, and an assorted blend of other upstate power. ConEdison Solutions and 1st Rochdale, on the other hand, sell electricity that comes from a mix of wind and run-of-the-river hydro. Con Ed Solutions’ mix is 25% wind, 75% hydro, and 1st Rochdale’s mix is 40% wind, 60% hydro. And in the future, 1st Rochdale hopes to offer even better green power packages, including one with a five percent solar component, sourced from roof-top installations located within New York City.

So far, business has been nothing but good for both companies. According to Tom Thompson of 1st Rochdale, almost all of the existing 200 megawatts of in-state wind power is already being supplied to existing green power subscribers. This sends a very real and meaningful signal to the developers of renewable energy projects, not to mention energy planners and politicians, that there is a market for their products, and that they can confidently build new renewable generators to meet the energy demands of the future.

Admittedly, the switch to green power can be somewhat underwhelming. Nothing perceptible happens and everything works exactly as it did before. But on the supply side, some very clever legal wrangling is going on to make sure that every unit of green power purchased is matched with a unit of green power produced. The way it works is that each unit of green electricity generated results in a renewable energy credit or “green tag.” The credit itself is only a piece of paper; a legal certificate that merely states that a given amount of electricity is indeed “green,” or from the renewable source that it claims to be from. These credits are stamped by a third party so it’s all on the up-and-up and there’s no double counting, and are then purchased on the wholesale market by green power marketers. Con Ed Solutions has partnered with a company called Community Energy to be its supplier of green credits, while 1st Rochdale uses a company called Sterling Planet. In fact, if you wanted to, you could keep your regular Con Ed electricity service and buy the credits directly from the wholesalers. Brooklyn Brewery did just this, when in the summer of 2003, with much beer and merriment to mark the occasion, it arranged to “green” its existing Con Ed electricity using renewable credits sold through Community Energy. For a list of New York green power wholesalers, see www.eere.energy.gov/greenpower/dereg_ny.shtml.

Buying green power is a lot like buying organic produce — you pay a premium for the qualities you value. It’s hard to say what the premium for green power is exactly, because the price you would compare it to — that charged by Con Ed — is a moving target, since much of Con Ed’s electricity comes from oil and gas, and as you may have noticed, the price of oil and gas tends to be somewhat volatile. This past month, for example, Con Ed’s price for generation (the important figure for comparison — as distinct from transmission and distribution) for residential customers was 9.8 cents per kilowatt-hour (you can find this printed on you’re Con Ed bill). Over the past few years, the price has ranged from as high as thirteen cents to as low as seven cents per kilowatt-hour. Con Ed Solutions and 1st Rochdale, on the other hand, offer fixed price packages. When you sign up, you get locked in to a single price for the next twelve months. For residential customers, 1st Rochdale’s current green power offer is 14.4 cents per kilowatt-hour, and the quote I got from Con Ed Solutions was 12.7 cents per kilowatt-hour, but this may vary depending on customer type.

What this means is that the premium for green power, when using current and past Con Ed pricing levels for comparison, is anywhere from seven cents to less than one cent per kilowatt-hour, with the average premium hovering around two to four cents. I live in a one-bedroom apartment and use about 120 kilowatt-hours each month. So for me, the average monthly green power premium is about $3.50. But my usage, to be fair, is a bit on the low side given my rather sparse and joyless lifestyle. The average monthly usage for most families is closer to 400 kilowatt-hours per month, for which the monthly green premium would average out at around ten dollars; or about 30 cents a day. Moving forward, the actual premium may turn out to be much less, and eventually even be negative (i.e. savings), as wind power is only getting cheaper, while oil and gas are getting more and more expensive

The appeal of green power is that it’s doable for just about anyone. Many people have feelings about air pollution, nuclear energy, dependence on foreign oil, or climate change, but may be limited in their options for acting on those feelings. Most people don’t have the political clout to request the closure of the dirtiest power plants, nor do they have the resources, whether financial or solar, to install their own renewable energy power plant. But anyone who pays a utility bill can sign up for green power, and they can do it as soon as today. And those people who do sign up can rightfully claim that the electrical energy they use does not compromise the environment or their political ideals in any shape or form. Even people who drive hybrid vehicles can’t make that claim, since they still use gasoline, and still pollute, even if it is to a much smaller degree. And if environmentalism and energy security isn’t your bag, it’s worth noting that labor unions and economists agree that more renewable energy directly translates into an improved local economy, since the new power will be located within the state, and will help create a new, sustainable industry. Not a bad deal for a few dimes a day.

GreenHomeNYC Feature Article

Among the warehouses and auto-shops of Crown Heights, Brooklyn, Benton Brown and Susan Boyle are working to convert the former Nassau Brewery Ice House into six residential loft spaces. They recently completed a roof-integrated photovoltaic installation, installed in-floor radiant heat, and are almost ready to plant the 2000 square foot green roof. The adjacent former-brewery building has allowed them to store salvaged wood, which they plan to use for kitchen cabinets, stairs and on the exterior of the building.

Here’s our recent Q&A session with Susan:

GreenHomeNYC: How did you settle upon the brewery for this project?

Susan: We rode our bicycles around neighborhoods in Brooklyn that we were interested in - looking for vacant buildings that were close to the subway. We came upon the ice house and were attracted to it because of its large arched windows, its brick construction, the fact that it had a little
side yard area - plus it was close to the subway and Prospect Park.

GreenHomeNYC: When in the design stage did you decide to add the green features?

Susan: We planned to use green building practices from the very beginning. I had been working in the sustainable transportation field so there was a was a natural inclination toward sustainable buildings. And then the more we started learning about it the more we wanted to make it work.

GreenHomeNYC: What was your motivation for going Green?

Susan: We were excited about setting an example of a urban gut rehab of a vacant building done affordably and with sustainability in mind. And, because we want to settle here in the City we have an interest in making it more livable- cleaner air and cleaner water… We also know that,
financially, in the long term it makes sense to create a more energy efficient home.

GreenHomeNYC: Where did you get your information and ideas?

Susan: The LEED resource book was very helpful in educating us about aspects of the design that we would not otherwise have thought about. Environmental Building News newsletter is a good source of info for us. We also went to seminars and talks to learn more about solar energy and green roofs.

GreenHomeNYC: You’re trying out quite a few different green building approaches
in the building, from the vegetated roof to the in-floor radiant heating. How did you select the approaches?

Susan: The approaches were selected based on the buildings needs. For example, the decision to install radiant heating came about because we had high ceilings with large windows so we need the most efficient way to heat the space, plus we needed to install all new floors- so we had the opportunity to run the tubes before we poured the concrete for the floor. The green roof is an idea that we are super excited about because it does so many good things from a sustainability perspective and, on top of all that, it is nice to look at.

GreenHomeNYC: What’s been your biggest technical challenge?

Susan: The first radiant tube layout of over 3000 linear feet, which was done in January, was a huge challenge in that we had never done it before and there were many unknowns. Also, selecting the membranes for waterproofing underneath the green roofs was a major challenge. There are many
choices of materials, many of them very expensive, and we found it challenging to differentiate the different materials- it was hard to get an unbiased evaluation beyond the individual suppliers’ advice. We did meet with a consultant on that aspect of the project, who was very helpful.

GreenHomeNYC: Was it hard to find contractors or service providers who would partner with you on such a cutting-edge project?

Susan: Most of the people we have worked with have not had any experience with green buildings- but we have found that most everyone -from the guys pouring the concrete over the radiant tubes to the roofers to the structural engineer- want to learn more about it.

GreenHomeNYC: Where did you find all the wonderful salvaged items — the sinks, the bathtubs and cabinets?

Susan: All of the old pipes in the building and old I-beams from the floors were given to local scrap metal collectors to be recycled. One scrap metal guy in particular came to pick up scrap metal and he had an old pedestal sink in the back of his truck so we inquired about it and he started looking out for sinks and tubs that had been thrown away that we could buy from him. It was a great recycling system and, on top of that, all the items were delivered right to our door.

GreenHomeNYC: Why spend the time and money to pursue the LEED rating? Do you feel like it is a brand that your tenants will want to buy?

Susan: Good question- we are pursuing the LEED certification because we want to be
a part of the movement to quantify and give credit to people who are building better buildings. We also hope that in the near future there will be strong tax incentive programs for green buildings that will
essentially pay for our time and money investment in the LEED process. The green aspect of the building will surely be appealing to tenants, but we’re not expecting the LEED name per se to be a major factor in their decision to live in the building.

GreenHomeNYC: What’s been your most rewarding moment thus far?

Susan: Seeing the design take shape has been amazing. But more practically- getting the building roofed- or “in the dry”- was super rewarding. Also, the response we get from people who are excited about the project has been very rewarding- we periodically get emails and calls from people
who are very supportive and excited about what we are doing.

GreenHomeNYC: How do you expect the building to perform in terms of energy consumption and operating cost savings compared to a standard building?

Susan: We expect the heating system to perform at least 20% better then a conventionally heated building - based on the increased efficiency of the radiant heating system. Overall about 50% of the building’s energy will be produced by roof integrated photovoltaics. But we do not have specific
numbers yet and have found that without hiring specialists it is hard for a project like ours to make these calculations accurately.

GreenHomeNYC: What other benefits do you expect to see aside from strict cost payback?

Susan: We expect the quality of life to be much higher than a typical residential building. For example, the radiant heat should be a more comfortable heat that is not as dry and does not put as much dust in the air as forced hot air typically do. Also, the green roofs should keep the building cooler
in the summertime and be something really beautiful to look at.

GreenHomeNYC: Would you do it again? Which elements would you keep, which would you toss, and which would you add, if you could do it again?

Susan: We would do it again- if we could. We would definitely do the green roof
and radiant heat, and we might try to include solar hot water heating and
maybe wind energy.

Read more about this building in Metropolis magazine.