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ALTERNATIVE ENERGY
Some real choices may be coming

BY MARY GRADY

If you had a choice, would you buy electricity generated from renewable sources, such as wind turbines, solar cells, small-scale hydropower plants, and fuels made from plants instead of petroleum? Despite five years of deregulation, this kind of choice still isn't available in Rhode Island's energy market. But a variety of ongoing initiatives could change this.

Erich Stephens, executive director of People's Power & Light, a nonprofit Providence energy company, hopes to offer green power to residential users in Rhode Island within six months. "By giving consumers that option," Stephens says, "it allows them to align their buying power with their values. They can vote with their pocketbook to build demand, and more and more projects will be built." He is negotiating with Mass Energy, a Boston-based nonprofit, to bring green power onto the local grid. "If 100 people sign up," says Stephens, "that's one more wind turbine."

Building wind turbines in Rhode Island may become easier after January 1, when the Rhode Island State Energy Office assumes administration of the state's Renewable Energy Fund. The fund collects about $2 million annually from a surcharge on electric rates. For the last five years, it has been managed by a small group of power companies and state agencies. Cost-benefit rules and other issues have constrained the use of the money, says Janice McClanaghan, chief of energy and community services at the energy office. "We hope this change in administration will revitalize the fund," McClanaghan says. "We'll have more flexibility, more diverse input, and hopefully, we can try different things, and get more ideas out there. Our objective is to stimulate the market and get more projects built."

Last week, the energy fund updated and reissued three requests for proposals that provide support for renewable-power projects. The fund offers $1.36 million in incentives to sign up residents and small businesses to buy green power, and a half million to encourage large electricity users to go green. Another $1.25 million is available to encourage projects such as wind farms and small hydropower plants that would add green electricity to the local grid. (For more information, call McClanaghan at 401-222-3370.)

On another front, People's Power & Light is lobbying for legislation that would require local electricity suppliers to obtain a minimum percentage of power from renewable sources. It would also establish a timeline for gradually increasing this amount. Thirteen other states have passed similar laws, says Stephens, and the approach has proven effective in promoting green technology. "It can also keep the price of electricity stable over time," Stephens says, "because there is less volatility than in fossil-fuel markets. Consumer advocates support this change." The legislation failed to pass at the General Assembly this year. "The feedback we got," says Julia Capobianco, of the state energy office, "was that the standards were too aggressive and too expensive." The bill will probably be revised and resubmitted next year, she says.

Issue Date: November 29 - December 5, 2002