Today I switched to paperless billing for our electric bill, and signed up for Green Product Blocks. I hope they offer this option again in 2009.
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AEP Ohio Green Pricing Option
Frequently Asked Questions
What is AEP Ohio's Green Pricing Option?
It is a program developed through an agreement entered into by AEP Ohio, the Public Utilities Commission of Ohio (PUCO) Staff, Ohio Consumers' Counsel and several other parties, that allows AEP Ohio customers, on a voluntary basis, to support the development of renewable energy resources.
AEP Ohio recently purchased Renewable Energy Certificates (RECs) that represent the environmental attributes of electric energy produced with renewable energy resources. AEP Ohio rebundled the RECs into Green Product blocks and is making those blocks available for purchase by its customers.
What are Renewable Energy Certificates (RECs)?
When a renewable energy generator–for example, a wind power generator– produces one megawatt of electricity that is sold into the wholesale electricity market, it produces a REC. That REC is then sold to a buyer, such as an individual or an organization. AEP Ohio recently purchased more than 50,000 RECs through a competitive bidding process and is making them available to its customers in 100 kilowatthour (kWh) blocks called a Green Product.
A REC represents the environmental attributes—for example, reduced air emissions—that are created when electricity is generated using renewable resources instead of using fossil fuel sources such as coal, oil, and natural gas. Through AEP Ohio's Green Pricing Option, RECs are sold separately from their associated electricity and thus enable customers to purchase the environmental attributes of renewable power generation independently of their retail power supply. In this way, customers participating in the Green Pricing Option are helping to support the generation of renewable energy.
What resources are used to produce the renewable energy?
Resources that qualify under this plan are defined as wind, solar photovoltaic, biomass co-firing of agricultural crops and all energy crops, certain hydro facilities, coal mine methane, landfill gas, biogas digesters and biomass co-firing of all woody waste including mill residue, but excluding painted and treated lumber, brought into service after January 1, 1997.
What type of renewable energy is represented by the RECs purchased by AEP Ohio?
Methane from solid waste landfills is the renewable energy represented by the RECs.
Solid waste landfills contain significant amounts of organic materials that produce a variety of gaseous products when dumped, compacted, and covered in landfills. One of the products produced in the decomposition of the organic materials is methane, the primary component of natural gas. Landfill gas facilities capture the methane, which otherwise would be released into the atmosphere, and use it to generate electricity. According to the United States Department of Energy, this process allows landfills to significantly reduce their emissions of methane and avoid the need to generate energy from fossil fuels, thereby reducing the emission of carbon dioxide, sulfur dioxide, nitrogen oxides, and other pollutants from fossil fuel combustion.
Is the program voluntary?
Yes, this voluntary program is available to all of AEP Ohio's metered customers located in Ohio, excluding Percentage of Income Payment Plan customers.
What will it cost?
AEP Ohio recently acquired RECs and rebundled them into Green Product blocks. Each block costs $0.70 and equals 100 kWh. Customers must agree to purchase at least two blocks of the Green Product. Customers may participate through a one-time purchase, or establish an automatic monthly purchase agreement.
For just a minimum of $1.40 per month (2 blocks @ $0.70 each), customers can support the Green Pricing Option. And for $7.00 per month (10 blocks) the Green Product monthly purchase represents 100 percent of the average residential customer's monthly usage.
This amount shall be in addition to the monthly charges determined according to the Company's rate schedule under which the customer takes service, regardless of the customer's actual energy consumption.
Customers should remember that when they purchase the Green Product blocks, they are supporting AEP Ohio's acquisition of RECs. Their purchase will take place in addition to their regular monthly electric bill. They will not receive any additional electricity from their purchase of the Green Product; however, they are helping to sustain a market for the environmental attributes of renewable power generation.
How do I enroll in the Green Pricing Option?
Customers can voluntarily enroll in the Green Pricing Option by calling AEP Ohio's Customer Solutions Center (24 hours a day, 7 days a week) at 1-800-277-2177 or by visiting the company's website at www.aepohio.com. The cost of the Green Product blocks will appear on the customer's next monthly bill. Customers do not have to participate.
How much of the Green Product do I need to purchase?
Customers who voluntarily enroll in this program agree to purchase a minimum of two blocks of the Green Product at $0.70 each for a total of $1.40. One block equals 100 kWh. This can be a one-time purchase or the customer can establish a regular monthly purchase plan.
Is there a maximum amount I can purchase?
Customers are limited to purchasing 50 Green Product blocks per month.
If I use less electricity than the amount of Green Product I purchased, do I still have to pay for all of the Green Product I requested that month?
The purchase of the Green Product takes place in addition to your regular monthly electric bill. You are billed for the amount of the Green Product blocks you request, and the total cost of the blocks is added to your monthly electric bill in addition to the billing for the electricity you use. You will not receive any additional electricity from your purchase of the Green Product.
Is this program available to customers in states other than Ohio?
No. The AEP Ohio Green Pricing Option is only available to the company's customers who reside in Ohio.
How can I be assured that the RECs are truly "renewable?"
Suppliers of RECs to AEP Ohio must attest that the RECs are produced by a renewable generator registered with the Energy Information Administration, and that the environmental attributes represented by the RECs are the sole possession of AEP Ohio and not claimed by any third party, among other requirements. This is essentially the same validation process used by other organizations that certify RECs.
When does the program begin and end?
Customers may begin enrolling in the Green Pricing Option in September 2007. The program is scheduled to be available through Dec. 31, 2008. It may end prior to that time if the following take place: 1) All of the Green Product blocks are purchased; and, 2) AEP Ohio is unable to acquire more RECs at the price it originally paid.
