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Green Energy FAQ


  How does this Green Energy Program allow me to take action against the effects of global warming?


The coal-based electricity you use every day creates a byproduct called carbon dioxide (CO2), which is emitted into the earth's atmosphere. This greenhouse gas is one of the leading causes of global warming. Our Green Energy program allows you to support and develop renewable energy sources that don't emit additional CO2. For every megawatt hour of electricity these clean, "green" energy sources produce, they also produce a megawatt hour of environmental benefit, which is sold as a Renewable Energy Certificate, or REC. These RECs are sold separately to pay the higher cost of producing renewable energy. It's helping! More than 2000 megawatts of new renewable energy (enough for about 6 million homes) has been produced in the U.S. from participation in green energy programs. Therefore, your purchases of Green Energy do help to make a difference. Your payments are currently used to purchase RECs from the Mother Ann Lee hydroelectric power plant on the Kentucky River and other renewable energy sources in adjacent states serving the Kentucky electric grid. So, once you have decided you want to contribute, your next step is to determine "how much."


  How much does it cost to participate?


Residential and small business customers can participate for as little as $5 per month, or in larger increments of $5 blocks.

Each $5 block contributes to 300 kilowatt hours of green energy produced within the past 18 months from a renewable energy source in Kentucky or an adjacent state.

Large commercial and industrial customers can participate in monthly increments of $13. Each $13 block contributes 1,000 kilowatt hours (one megawatt hour) of green energy from the same renewable energy sources.


  How many blocks should I buy?


Each $5 block of Green Energy purchases 300 kilowatt hours of Renewable Energy Certificates (RECs) so you may want to support the program at a level that matches your own energy use. For example, the average LG&E home uses 900 kilowatt hours of energy each month. Therefore $15 per month would "match" average residential monthly usage.

You may prefer to use the Green Energy Calculator to help you decide on your level of support.


  Do I still pay my regular bill?


Yes. Green Energy payments are in addition to the total amount you pay for the energy you use each month. You should not participate if you currently have difficulty paying your regular bill charges.


  For homes and small businesses.


Residential (RS) and small business (GS) customers may participate in the Green Energy program in increments of $5 "blocks." Each $5 block allows the company to purchase 300 kilowatt hours of Renewable Energy Certificates (RECs) from renewable energy sources in Kentucky and adjacent states.

All green energy purchases are voluntary and in addition to the regular bill amount. When you enroll, there will be a new "Green Energy" line item added to your bill, and this amount will be included in your "total amount due."


  For large commercial and industrial businesses.


Large commercial and industrial customers (rates LP, LCI-TOD, MP, LMP-TOD, or LI-TOD), may participate in the Large Green Energy program in increments of $13 blocks, with each block purchasing 1,000 kilowatt hours of Renewable Energy Certificates (RECs) from regional renewable energy resources. This program requires an agreement to maintain Green Energy payments for a minimum of 12 months.


  Can I cancel my participation at any time?


Small Green Energy customers can discontinue their Green Energy contributions any time by calling customer service or by clicking the "Change Participation Level" link on this site. However, 'stopping and starting' is not allowed. When a customer discontinues his or her green energy contributions, they will be required to wait at least 12 months before enrolling again.


  What is green power?


Green power is electricity that is generated by a renewable energy source such as hydro power, landfill gas, wind, biomass and solar power.


  Where is the green power that this program supports?


The LG&E and KU Green Energy programs currently support the Mother Ann Lee hydroelectric power plant on the Kentucky River, and anticipate adding new sources from adjacent states in 2009.


  Does the green power come from KU and LG&E sources?


No. This Green Energy program will purchase Renewable Energy Certificates (RECs) from other renewable energy sources in Kentucky and adjacent states. We have determined that our best immediate contribution to renewable energy is to support the newest green energy projects of other companies while we continue to evaluate our own opportunities to build new renewable energy plants.

LG&E and KU currently have two hydroelectric power sources that provide renewable energy to all customers, but these sources are already funded through existing rates.

We recently invested $75 million to increase our existing hydroelectric energy production by 100 megawatts — enough energy to power 50,000 homes. Since this enhancement involved an existing power source, the extra renewable energy is not funded from the Green Energy program that contributes to "new" renewable energy.


  Does a green energy program really make a difference?


All new green energy displaces the need for traditional energy such as fossil fuel energy like coal and natural gas that would otherwise be emitting more greenhouse gas into the atmosphere and contributing to global warming. Green Energy programs contribute to the further development of these new generators that offset the need for fossil fuel-based generators.

In the past two years, 2000 megawatts of new renewable energy has been added to the U.S. energy supply, specifically by funding from voluntary green energy programs.


  Why does green energy require an additional customer cost?


Because green energy costs more than coal-based or gas-based electricity, voluntary payments from customers are needed to make up the difference. With extra funds, energy developers can build more renewable energy plants.


  Where do my Green Energy dollars go?


LG&E and KU will use your Green Energy dollars to purchase Renewable Energy Certificates (RECs) that come from renewable energy sources in Kentucky and adjacent states. A small portion of customers' contributions will also be used to grow the program through promotional efforts that increase enrollments and contributions, helping to further the demand for more renewable energy.


  What are Renewable Energy Certificates? How does it help to buy them?


A Renewable Energy Certificate (REC) is issued for every megawatt-hour of electricity that is generated by a new renewable energy source. RECs represent the environmental benefits (such as the absence of greenhouse gases) associated with that electricity. By buying green tags on behalf of our customers, we are directly supporting the operation of those green energy sources, and the development of new green energy generators.


  Does this program help develop new green energy? How?


The purchase of Renewable Energy Certificates (RECs) helps develop green energy because RECs can only come from new renewable energy sources. Each REC comes from a megawatt-hour of green energy that was actually produced (and sent onto the grid) within the past 18 months.


  What is Green-e Certification?


Our Green Energy program has completed the application process and has been approved for Green-e Energy® certification. This is the highest standard of certification for green energy programs. When a program is Green-e Energy Certified®, it ensures that our Renewable Energy Certificates (RECs) come from actual green energy, and that the green energy sources were recently built. So customers' dollars are being effectively used for the development of new renewable energy, in addition to supporting the existing green energy plants.


  I understand that the green energy is not being produced by LG&E or KU. But is it on the same electrical "grid"?


Yes. Green-e Energy® certification requires that the underlying green energy for this program is delivered onto regional transmission grids used by LG&E and KU.


  Can larger commercial and industrial customers participate?


Commercial and industrial customers can buy blocks in $13 increments, which would allow the company to purchase 1,000 kWh of Renewable Energy Certificates from green energy sources.

Large Green Energy customers must sign an agreement to commit to 12 consecutive months of green energy participation.


  How is E.ON U.S. demonstrating leadership in the area of global warming and climate change?


E.ON U.S. has always been an industry leader for environmental improvements. But in the past year we've stepped up our efforts more than ever. There is credible science suggesting that greenhouse gases resulting from human activities are influencing changes in the Earth's climate. Kentucky is a coal state and our affordable rates are based on the fact we burn coal. So, through clean coal research partnerships, we're looking for ways to continue to utilize an affordable fuel in a more environmentally friendly manner.

FutureGen
One of our most significant activities was our $25 million commitment to join the FutureGen Alliance, a non-profit consortium of global electric utilities and coal companies working with the U.S. Department of Energy to site and develop FutureGen, the world's first coal-fired, near "zero emissions" power plant.

The nominal 275-megawatt FutureGen plant will commercially produce enough electricity to serve about 150,000 average U.S. homes. The plant will gasify the coal through a process that will convert the coal's carbon to synthetic gas comprised of mostly hydrogen and carbon monoxide. The synthetic gas will react with steam to produce additional hydrogen and a concentrated stream of carbon dioxide that will be easier to capture and store than CO2 from conventional coal-fired plants.

Ninety percent of the total carbon dioxide produced by the plant is expected to be captured initially and at least 1 million tons per year of CO2 will be stored deep underground in saline aquifer formations. With advanced technologies, this type of plant may eventually be able to capture up to 100 percent of carbon dioxide emissions.

This effort will lay the groundwork for developing similar power plants throughout the world.

E.ON U.S. and the University of Kentucky
Our other major research partnership is with the University of Kentucky's Center for Applied Energy. We've committed $1.5 million, over three years, to UK to study new economically viable technologies to reduce greenhouse gas emissions from coal-fired generation plants. Researchers are examining technologies to separate, capture and store carbon dioxide emitted by coal-fired power plants. This partnership will allow E.ON U.S. an opportunity to maintain its competitive rates, support Kentucky's coal industry, and look for ways to reduce greenhouse gas emissions.


  What else can I do?


We encourage you to join our efforts because this issue cannot be solved by one group or individual. We all must take action to reverse the effects of greenhouse gases on our earth's atmosphere.

Many of the ways to save money on your energy bill happen to be the same efforts that help the environment because the cleanest and least expensive energy is the energy we don't use.

Some things to consider include:

Using Compact Fluorescent Lighting
By replacing five of the most frequently used fixtures (or the incandescent light bulbs in them) in your home with high efficiency lighting, an average KU/LG&E residential customer can prevent 1,900 pounds of greenhouse gases from being emitted and save more than $60 every year in energy costs.

Running the Dishwasher Only When Full
By running the dishwasher only when it's full, an average KU/LG&E residential customer can prevent 1,300 pounds of greenhouse gases from being emitted and can save approximately $40 per year.

Adjusting Your Thermostat or Installing a Programmable Thermostat
Adjusting your thermostat accordingly or programming a programmable thermostat to automatically make the necessary adjustments truly can make a difference. By moving your thermostat down two degrees in winter and up two degrees in the summer an average KU/LG&E residential customer can prevent approximately 3,200 pounds of carbon dioxide from being emitted and save approximately $98 per year.

Changing the Air Conditioner's Filter
By replacing or cleaning a dirty air conditioner filter as recommended, an average residential KU/LG&E customer can prevent approximately 4,900 pounds of carbon dioxide from being emitted and save approximately $150 per year.

Installing a Low-Flow Showerhead
Using less water in the shower means less energy to heat the water. By using a low-flow showerhead, an average KU/LG&E residential customer can prevent approximately 4,900 pounds of carbon dioxide from being emitted and save approximately $150.

Planting a Tree
Trees absorb carbon dioxide and make clean air for us to breathe. Planting a tree can consume 2,000 to 6,000 pounds of carbon dioxide over the life of the average tree.

Weatherizing Your Home
An average residential KU/LG&E customer — that heats with electricity — can prevent approximately 8,900 pounds of carbon dioxide from being emitted and save approximately $274 per year by caulking and weather-stripping their doorways and windows.




Definitions of green energy sources1
  • Landfill energy
    This source is developed by capturing the methane created from decaying organic waste. Collecting and using landfill gas to generate electricity not only improves the environment but preserves fossil fuels for future generations.
  • Biomass generation
    A form of energy generation that spans everything from old-style wood burning to futuristic processes, such as extracting ethanol from agricultural waste.
  • Certified low-impact Hydroelectric power
    A renewable form of electric generation that uses moving water and meets 8 rigorous guidelines set forth by the Low Impact Hydropower Institute (LIHI)to protect the river for fish, environmental quality, and people. The LG&E and KU Green Energy programs are currently supporting the Mother Ann Lee hydroelectric power source on the Kentucky River. For more information about LIHI, visit www.lowimpacthydro.org.
  • Wind power
    Wind power is the conversion of wind energy into more useful forms, usually electricity using wind turbines.
  • Solar power
    Solar power is the technology of obtaining usable energy from the sun.
1Note: not all types of facilities listed below are used to supply the LG&E and KU Green Energy programs.
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