Louisiana Commission Approves Pilot Green Pricing Program

December 04, 2006

The Louisiana Public Service Commission (PSC) approved a pilot green power program for customers of Entergy Louisiana in a hearing in Baton Rouge November 29. The PSC approval means that Louisiana has joined 38 other states in offering some form of green pricing to consumers.

The Entergy program will take effect in late spring of 2007 and continue for one year. Customers of Entergy Louisiana in Baton Rouge and western Louisiana will have the option of paying a Green Pricing Tariff of $2.25 per month for a block of 100 kilowatt hours (kWh) of electricity generated from renewable energy. As with most green pricing plans, customers have the flexibility to buy as many or as few blocks as they want.

Revenue from the program will go toward paying the extra cost that suppliers incur from generating electricity from renewable fuels. Alternative-fuel producers will get up to $0.065 per kWh for electricity generated from sources that went into service after January of 1997. Producers who generate from older units will receive approximately $0.06 per kWh.

Phil Hayet, an engineering consultant to the PSC, said that the new program could create a market for alternative-fuel companies who want to sell electricity. For example, he cites a cane syrup mill company in southwest Louisiana that wants to burn sugarcane waste to generate energy. In addition, Hayet said that FedEx has expressed interest in purchasing renewable energy through the program.

Staff from the Louisiana Department of Natural Resources (DNR) testified in the PSC case. DNR, which serves as the state energy office in Louisiana, also publishes information about green power and renewable energy resources in Louisiana on its Technology Assessment Web site.

Source: November 30 2006 news story from the U.S. Department of Energy Green Power Network.