<![CDATA[Grist - Comment Feed for Florida utility’s green energy program died a predictable death]]> Grist Comment Feed en Comment #1 by JMG http://www.grist.org/article/opt-liver/ Mon, 04 Aug 2008 04:26:29 -0700 http://www.grist.org/article/opt-liver/1 Chopping liver further

Well, opt-out would increase participation, but only to the extent that they conceal information about how to opt-out.

The bottom line issue with green power rates is that the free riders get all the benefits of others' participation at no cost.  If YOU sign up and voluntarily tax yourself to help bring green power into the grid, then I get the same benefit that you do, and you pay the freight.

What utility commissions have to offer to break green power participation out of the low single digits is a price guarantee for participants -- that is, customers who pay the premium for green power now should get, in the same proportion as they are buying green power (10%, 25%, 50%, 100% or what have you), price protection from increases felt by non-green customers.

Once you offer that set up -- which is easy to calculate, since green power has no fuel expense that is vulnerable to market shocks -- then you will see green rates attract a lot of interest -- so much so that you could start auctioning off participation (i.e., demand would outstrip supply, so you could raise the premium a bit using auctions to allocate participation, which would raise even more funds faster to help produce more green power supply).

The 5% Project

]]> Chopping liver further

Well, opt-out would increase participation, but only to the extent that they conceal information about how to opt-out.

The bottom line issue with green power rates is that the free riders get all the benefits of others' participation at no cost.  If YOU sign up and voluntarily tax yourself to help bring green power into the grid, then I get the same benefit that you do, and you pay the freight.

What utility commissions have to offer to break green power participation out of the low single digits is a price guarantee for participants -- that is, customers who pay the premium for green power now should get, in the same proportion as they are buying green power (10%, 25%, 50%, 100% or what have you), price protection from increases felt by non-green customers.

Once you offer that set up -- which is easy to calculate, since green power has no fuel expense that is vulnerable to market shocks -- then you will see green rates attract a lot of interest -- so much so that you could start auctioning off participation (i.e., demand would outstrip supply, so you could raise the premium a bit using auctions to allocate participation, which would raise even more funds faster to help produce more green power supply).

The 5% Project

]]> Comment #2 by Wolverine http://www.grist.org/article/opt-liver/ Mon, 04 Aug 2008 07:30:31 -0700 http://www.grist.org/article/opt-liver/2 Opting Is A Big Issue

Dave is quite correct and changing this would make a huge difference.  Most people don't notice these things and of those who do, another majority doesn't bother to do anything.  That's why the credit card companies, telemarketers, and other advertisers make such a fuss about whether legislation is opt-in or opt-out.  These people don't accumulate and maintain their money by not knowing what they're doing, and they wouldn't spend the resources fighting for laws that only permit opting out if they thought they'd get as much business by making people opt in.

]]> Opting Is A Big Issue

Dave is quite correct and changing this would make a huge difference.  Most people don't notice these things and of those who do, another majority doesn't bother to do anything.  That's why the credit card companies, telemarketers, and other advertisers make such a fuss about whether legislation is opt-in or opt-out.  These people don't accumulate and maintain their money by not knowing what they're doing, and they wouldn't spend the resources fighting for laws that only permit opting out if they thought they'd get as much business by making people opt in.

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