Wisconsin Public Power Inc. (WPPI) recently filed a plan with the Public Service Commission of Wisconsin to double the amount of green power provided to customers who participate in its Renewable Energy Program, thus lowering the per-kWh price. Currently, consumers can purchase renewable energy in 150-kWh monthly increments or "blocks" for $3.00 each—a premium of 2¢/kWh over standard electricity rates. Under the new pricing structure, effective January 2008, the utility will offer 300-kWh blocks of green power for $3.00, reducing the premium to 1¢/kWh. Participating customers will automatically be upgraded to the larger-sized blocks in January.
The utility has been able to reduce the price of its green power offering because it was able to procure renewable energy for the program at stable prices under long term contracts when the program was established in 2001. In subsequent years, as the cost for energy from traditional sources has gone up, the incremental cost for WPPI's renewable energy has decreased. The utility also added a lower-cost landfill gas generation project to its renewable resource mix this year. WPPI is passing on these savings to its green power customers by lowering the renewable energy premium.
News Release - WPPI to lower price for green power