Coming from Fort Worth, a deregulated utility city, politicians and electric companies are very vocal about keeping the current deregulated system. Ads touting the benefits of company A while down playing the benefits of company B, new customer incentives, and the possibility of great rebates are all over local television commercials, print ads and radio spots.
Theoretically, this type of system should give customers the best product for their money because businesses must stay competitive in order to win their market share. However, competition also means that consumers are stuck doing much of the leg work when it comes to finding the best deal, the best rebates and the “greenest” company. Results, satisfaction and quality are going to vary greatly from company to company.
Austin takes a completely different approach by having a centralized municipally owned utility: Austin Energy. While DFW’s system can seem chaotic and riddled with red tape Austin’s system seems the exact opposite: organized, structured and unified. Having a centralized utility not only seems to offer more clarity for the customer, it also has the added benefit of greater renewable buying power.
Austin Energy has created two key sustainability programs: The Green Choice Program and The Green Building Program
The GreenChoice Program, which began taking subscribers in 2000 has been selected as the country’s #1 green energy program for 9 years in a row. In fact, nearly 12% of Austin’s energy comes from renewable sources and the program hopes to reach nearly 35% by 2020.
The GreenChoice Program falls under the City of Austin’s Climate Protection Plan, which includes utilities, transportation and building codes. Because the program is so successful in the commercial market, which covers about 85%, the program is not marketed to residential customers. Many of these commercial companies are using the program as part of their overall green planning and social responsibility strategies and are able to use the program as a beneficial marketing tool. Large companies, who purchase a minimum of 12 million kilowatt hours, or roughly 10% of their energy, are able to take advantage of the Austin Energy advertising package. Smaller companies and residential customers currently have to make a full commitment to the program and purchase 100% of their energy from the program in order to enroll.
Because customers actually pay a premium to be a part of GreenChoice, about $25 more per month for 1,000kWh used, it is extremely helpful that the goal of the program is not to make money but to breakeven. Customers who are spending more are able to purchase batches worry free because they know that their money is not being priced higher for that “green” label. Customers who buy a batch enjoy the added bonus of fixed pricing. For instance, customers who currently subscribe to batch 6 will pay 5.7 cents per kWh until 12/31/14. This gives customers the added benefit of being able to budget their energy expenses.
With the addition of more manufacturing, newer technology, greater supply and cheaper steel the program is currently in discussions to determine if a redesign is necessary.
Like the GreenChoice Program, to some Austin Energy’s creation of the Green Building Program might seem strange. Why would an energy company encourage energy efficiency? Wouldn’t they stand to lose money especially when it comes to the financial windfall that can follow new development? According to Jeff Wacker, it makes perfect financial sense. Energy companies can actually save money by encouraging efficiency and limiting the number of new plants needing to be built.
20 years ago, Austin stood alone as the first city to offer a Green Building Program. Like GreenChoice, it is still one of the most cutting edge programs in the country and in fact contributed to the original LEED program development. Though LEED has grown to international acceptance, Austin still remains confident in their own program as it is tailored to the region and climate demands.
By the Green Building Program working closely with developers, architects and engineers at the upstart of the design process they are collectively able to ensure efficiency and function are the end result.
Currently, there are commercial, multi-family and single family distinctions for their 5 categories: sustainable site, energy efficiency, water-use efficiency, indoor/environmental quality and materials and resources.
As new energy codes are created, the program is constantly updating their standards and star requirements. 8 years ago a law was passed that the CBD had to have at least 1 star on all new developments. Now, if a zoning change is submitted, the development must be at least 2 star rated. Since the programs inception it is clear that it has achieved a fair amount of success with nearly 10,000 single family homes having received a rating. With current progression the program is quickly moving toward more performance based codes to ensure their continued success.
Overall, I was very impressed with Austin Energy’s forward thinking and their ability to create easily accessible and understandable sustainability initiatives for both commercial and residential consumers.