Residents could pay premium for renewable energy

 

By Colt Foutz
staff writer

By water, by wind or by the light of the sun, the city of Naperville is seeking environmentally friendly alternatives in energy production.

On Tuesday, the City Council considered a proposal to offer residents the chance to purchase a portion of their electricity from "green," or pollution-free, sources in Illinois.

Through Wayne, Pa.-based Community Energy, the city would allow electricity customers to purchase renewable energy in blocks of 200, 400, 600 or 800 kilowatt hours each month.

About 90 percent of the renewable energy would be generated by wind from the Mendota wind farm and new machines planned for installation west of the city. Five percent would come from hydroelectric dams and another 5 percent from solar cells.

But Councilman Richard Furstenau was among those who wanted to know more before signing off on the new technology. Chief among his concerns was cost.

The renewable energy wouldn't cost the city anything or affect its contract with ComEd, said Purchasing Manager Michael Bevis. But individual electric customers would pay about $5 for every 200 kilowatt hours of renewable energy they signed up for. Assuming an average customer uses 800 kilowatt hours per month, and that customer signed up for 400 kilowatt hours of renewable energy, their monthly bill would increase by about 16 percent, according to Finance Director Doug Krieger.

Furstenau asked what the extra cost is based on, and how it correlates with the construction of new wind towers or other equipment or financing of new technology. He also asked how soon prices might decrease.

Bevis said the premium is based on industry standards and checks against what ComEd is paying for development of wind generation. Bevis had no information on when prices might decrease.

Furstenau had other questions, including where energy from the hydroelectric dams and solar cells would come from, and what percentage of the city's power would be from the new sources. He wanted to be sure customers who signed up for the service got what they were paying for.

But Councilman Jim Boyajian, a former energy executive, vouched for the legitimacy of the companies. He pointed out that cities in more than 30 states have already participated in offering renewable energy. The city of Chicago has pledged to draw 20 percent of its energy from renewable resources by 2009. The service is entirely optional to Naperville residents, Boyajian said, and gives them the opportunity to support an environmentally friendly alternative.

"I don't see any harm in offering it to them," he said. "I suspect in the beginning the penetration in our community is going to be pretty low. But who knows? It might not."

Councilwoman Darlene Senger said participating in the program — even with a higher price — encourages the development of green energy sources.

"(Participants are) giving them not only resources to help produce (renewable energy), but giving them the opportunity to eventually help lower the price," she said.

Councilman John Rosanova wondered whether the city might be better off doing nothing. He cited the example of high-speed Internet service. Several years ago, when the technology was new, the city contemplated paying to offer those services here.

"Ultimately, the market took over and they took care of it," Rosanova said.

The council ultimately tabled the matter for further discussion. Among the answers it seeks are the percentage of residents that participates in renewable energy programs in other cities and the level of satisfaction with the product.

Contact staff writer Colt Foutz at cfoutz@scn1.com or (630) 416-5196.

 

09/09/04

SuburbanChicagoNews.com — ©  2004 Digital Chicago & Hollinger International Inc.