Dear Mayor, City Council members, and supporting staff,

 

We ask you to consider our concerns about the changes for the widely acclaimed GreenChoice program that of which we are all proud. We are the Energy Action Team, a working committee within the Interfaith Environmental Network. The Energy Action Team is an action-oriented coalition of ~200 individuals and ~ 25 congregations from a variety of faith traditions who are committed to taking measurable local actions that lead the way to and beyond carbon neutrality.

 

Austin Energy has stated that its GreenChoice program aims to prove “that renewable energy can be a good investment, not just environmentally, but economically as well.” Until now, Austin Energy’s GreenChoice has been highly successful, receiving accolades from all over the nation.  Austin Energy is making changes to GreenChoice that will undermine the program. The changes break faith with program participants who are committed to making investments that are economically viable over time and that help preserve our environment. The proposed changes tie GreenChoice rates to fossil fuel costs rather than to the actual cost of using zero-carbon renewable resources. The program creates a perverse subsidy – a subsidy that harms both the economy and the environment. We ask you to fix it.

 

Please find attached a more thorough one page review where we lay out our concerns and propose what we feel would constitute a GreenChoice program that builds on and expands the most successful renewable energy program in the country.

 

We are available to talk about this and help you define and find a pathway forward that suits Austin best.

 

 

Joep Meijer, on behalf of the Energy Action Team

 

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You can contact your favorite council member and tell him/her why this is important to you.

Here are the talking points that we drafted:

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TALKING POINTS for EAT ACTION on GreenChoice^®

In Support of an Effective, Fairly Priced, Renewable Choice Program

The Energy Action Team is an action-oriented coalition of ~200 individuals and ~ 25 congregations from a variety of faith traditions who are committed to taking measureable local actions that lead the way to and beyond carbon neutrality.

 

Summary: Austin Energy has stated that its GreenChoice^® program aims to prove “that renewable energy can be a good investment, not just environmentally, but economically as well.” Until now, Austin Energy’s GreenChoice^® has been highly successful, receiving accolades from all over the nation.  Austin Energy is making changes to GreenChoice^® that will undermine the program. The changes break faith with program participants who are committed to making investments that are economically viable over time and that help preserve our environment. The proposed changes tie GreenChoice® rates to fossil fuel costs rather than to the actual cost of using zero-carbon renewable resources. The program creates a perverse subsidy – a subsidy that harms both the economy and the environment. We ask you to fix it.

The new version of the program adopted during the budget sessions for 2014 will discourage participation because the new version does not offer optimal economic or environmental investment options to Austin Energy customers, for the following reasons:

o   It breaks the covenant with participants that buying GreenChoice^® directly helps reduce carbon emissions.

o   The one cent charge will create a perception among customers that GreenChoice^® participants are contributing to Austin Energy’s general budget rather than contributing directly to renewable energy production.

o   The premium of 1 cent per kWh is based on the erroneous assumption that renewable electricity will always be more expensive than non-renewable electricity production.

o   There is no possibility for hedging against fluctuations in fossil fuel prices when renewable production often requires no fossil fuels.

An ideal GreenChoice^® program would allow participants to:

o  Invest in a renewable energy pool at rates that are not based on fossil fuel prices

o  Pay premiums, if necessary, in a manner that allows participants to see those premiums go towards investment in additional renewable generation capacity, to continue to grow the GreenChoice^® program, and that is transparent and traceable.

o  Trace their investments to direct carbon emission reductions

o  See potential future economic benefits from participation in a future where fossil fuels will be more expensive than renewables

o  Help Austin meet and exceed its goal of obtaining 35% of its energy from renewable sources

o  Purchase renewable energy at a price that is capped at the average cost of providing electricity or the average actual cost of providing electricity from renewable energy, whichever is lower

GreenChoice^® has allowed participants to see the direct connection between the rates they pay and the renewable energy they receive. The new version of the program will break that connection by abandoning the batch system for a more general system.  The new version of the program would add a one cent GreenChoice^® charge to the “power supply adjustment charge.” The main component of the power supply adjustment charge is fossil fuel costs.

GreenChoice^® has provided customers with the most effective, practical, and direct way to move toward carbon neutrality. It would be tragic to take away this great advantage available to individuals, congregations, and businesses. GreenChoice^® has provided those customers with the best way to decisively become part of the solution to our collective global climate challenge, the greatest challenge humankind has ever faced.