Sunday, April 21, 2013

Wind Energy in Princeton Through "Third Party" Suppliers

Here's a way to get renewable energy for your home without installing solar panels.

Various "third party" energy suppliers have been calling homeowners over the past year or so, offering reduced rates for electricity and gas. Energy deregulation allows us to buy our electricity and gas from companies other than PSEG. Though PSEG still sends the bill and maintains the lines and meters, we buy the energy itself from other companies.

Last summer, I succumbed to one, switching my electricity over to a supplier called Discount Energy. They promised lower electricity bills, and got me to sign a one year agreement, with penalties if I opted out before one year was up. I regretted entering into such a contract after hearing that companies like North American Power offer "green" options at similar cost that promote renewable energy, with no long-term commitment.

More recently, phone solicitations from other companies started coming in, and then I got a letter from PSEG saying I had agreed to switch over to Energy Plus Holdings LLC for electricity, and that I had one week to respond before the change would occur.

I had done no such thing, was worried I'd pay a penalty for breaking the contract, and so called up. Turns out that Discount Energy had transferred its customers to Energy Plus, and the commitment to stay with them a year had been eliminated.

I asked Energy Plus if they offer a renewable energy option, and was told that for a penny more per kilowatt hour of energy, I could go with 100% wind energy. Now, for eleven cents per kilowatt hour, instead of ten cents, our home will be powered by the wind. That doesn't mean that the electricity for our house will actually come from a wind turbine, but rather that Energy Plus is now obligated to buy that much more wind energy, which in turn stimulates construction of more wind turbines.

Our house uses about ten kilowatt hours of electricity per day (a third of normal usage, using techniques described at http://frugaline.blogspot.com/p/shortcuts.html), which works out to about $35 extra for energy per year--a very modest price to pay for shifting away from fossil fuels.

Sustainable Princeton recently had an info session on this green energy option, including representatives from North American Power and Viridian Energy. To make the switch, you could compare their rates to whatever green option your current supplier offers. (There are also "green" options for natural gas, but these are more expensive and in the form of "carbon offsets", which may or may not really work.) For electricity, though, the cost difference is so small that going with renewable energy is an easy choice. There's no fee for changing suppliers, and no long-term contracts required.

Particularly in this polarized time when government support of green energy is unpredictable, it's good to have such an affordable way for us as individuals to support renewable energy.

2 comments:

Trevor said...

Hi. I also live in Princeton and enjoy reading all of your posts.

My question, is Discount Energy/Energy Plus saving you money over PSE&G? I've heard of the option to use 3rd party energy suppliers but keep thinking there must be a catch somewhere.

Thanks,
Trevor

Steve Hiltner said...

Good question! The PSEG bill provides a "Price to Compare", so that you can compare the PSEG rate to whatever third party supplier you are using or thinking of using. PSEG is currently charging 11 cents/kilowatt hour, the same cost as 100% wind with North American Power, Energy Plus, etc. There doesn't seem to be any downside, or catch, as far as I can tell.

I also found this page on the PSEG website that may be useful: http://www.pseg.com/home/customer_service/energy_choice/shop.jsp.