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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 the Kentucky 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 "green tag." These green tags 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 contributions through green energy programs.

Therefore, your purchases of Green Energy do help to make a difference. Your payments are currently used to purchase green tags from the Mother Ann Lee hydroelectric power plant on the Kentucky River, and therefore to help fund the expansion of Kentucky hydro power. 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 purchases of $5 blocks.

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

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 Kentucky renewable energy sources.


  How many blocks should I buy?


Each $5 block of Green Energy purchases 300 kilowatt hours of "green tags," 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 contribute to the Small Green Energy program in $5 "blocks." Each $5 block allows the company to purchase 300 kilowatt hours of Green Tags from Kentucky Green Energy sources.

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 the amount of the green energy contribution 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 contribute to the Large Green Energy program in $13 blocks, with each block purchasing 1,000 kilowatt hours of Green Tags from regional renewable energy resources. This program requires an agreement to maintain Green Energy payments for 12 months.


  Can I stop donating 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.


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


No. This Green Energy program will purchase Green Tags from other Kentucky energy sources. 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 fossil-fuel energy 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 customer contributions?


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


  Where does the money I contribute to the Green Energy program go?


LG&E and KU will use most of the Green Energy contributions to purchase Green Tags (also known as Renewable Energy Certificates, or RECs) that come from Kentucky green energy sources. A small portion of customers' contributions will also be used to grow the program through promotional efforts that increase enrollments and contributions.


  What are green tags? How does it help to buy them?


A Green Tag is issued for every megawatt-hour of electricity that is generated by a new renewable energy source. Green Tags 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 contributing to 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 a Green Tag helps develop green energy because a Green Tag can only come from new renewable energy sources. Each Green Tag comes from a megawatt-hour of green energy that was actually produced (and sent onto the grid) within the past year.


  What is Green-e Certification?


Our Green Energy program has applied to be Green-e Certified. This is the highest standard of certification for green energy programs. Once approved, it ensures that our green tags come from actual green energy, and that the green energy sources were recently built. So customers' contributions 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 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 customer participate?


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

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


  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 sources
  • 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.
  • Hydroelectric power
    A renewable form of electric generation that uses moving water. The LG&E and KU Green Energy programs are currently supporting the Mother Ann Lee hydroelectric power source on the Kentucky River. Both LG&E and KU also have hydroelectric generation through their Ohio Falls and Dix Dam stations, respectively.  Additional information about these facilities
  • 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.
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