r greenchoice marketing green power to key accounts mark kapner october 25, 2005 tm
TRANSCRIPT
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GreenChoiceMarketing Green Power to Key
AccountsMark Kapner
October 25, 2005
TM
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Austin Energy
Municipally-owned electric utility
Serves more than 700,000 population
Area > 400 sq. miles
Austin
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Customers
26% of energy sold to residential
70% to commercial
4% to municipal
R Generating Sources
3 gas and oil-fired plants 1670 MW1 coal-fired plant 570 MW1 nuclear plant 400 MWPurchase 212 MW of windPurchase 11 MW landfill methane
powerPurchase 1 MW of Hydro
R Conventional Generation Mix
by MWH
Coal 35%Nuclear
30%Gas/Oil 30%
R GreenChoiceBackground
Austin’s Strategic Goal: 20% of energy from renewables by 2020
By enrolling, customer causes change in AE’s generation mix
Customer benefits from the price stability inherent in renewable energy
GreenChoice price linked to actual cost of renewable energy
TM
R GreenChoice Renewable
Sources Wind 79% Landfill methane
(17 % of MWH) Photovoltaics and Hydro
(4% 0f MWH)
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R WindPros and Cons
Least expensive (per kWh) Little firm capacity Transmission
adequacy risk Public acceptance-
fairly high
R Landfill MethanePros and Cons
40% more expensive than wind energy
Very high firm capacity
Public acceptance- moderate
R Solar Photovoltaics
Most expensive (about 7 times cost of wind)
Fairly high firm capacity
Public acceptance -extremely high
R How GreenChoice Works
All customers eligible Commercial customers contract for min 5
years Subscribers pay a fixed GreenChoice
charge in place of a fuel charge that fluctuates depending on market prices of coal and gas; price lock for as long as 10 years
Green Choice charge = 3.5 cents per kWh Fuel Charge is currently 2.8 cents per
kWh Commercial customers receive
recognition proportional to level of participation
TM
R Austin Energy Electric Bill
Base Rate 6.44 cents x kWh plus
Fuel charge = $0.028 x kWh or GreenChoice charge = $0.035 x
kWh
R Promotion and Marketing
Stories in utility bill inserts Ads in local newspapers Billboards Customized presentations to
businesses Speaking engagements Letter from environmental groups
to their mailing list TV commercials
R Austin Energy’s Key Accounts
High Tech, Data Centers and Gov’t Semiconductor Commercial Real Estate Schools, Hotels and Hospitals Grocery and Restaurants Communications, Light Industrial,
Mfg, Residential Hi Rise
R Corporate Champions (use > 700,000 kWh
per year) 3M Corporation
823 CongressAdvanced Micro Devices (AMD)Ambion, Inc.Apple ComputerBAE SystemsBLOCKBUSTERFisher-Rosemount SystemsFour Seasons Hotel AustinG S D & MGinny's + MeritGraeber, Simmons & CowanGreenwood TowersHabitat Suites HotelHeart Hospital of AustinHyatt Regency AustinIBM
Iron CactusKinko's La Quinta Inn & SuitesLBJS Broadcasting CompanyLive Oak DevelopmentMaudie's CafePier 1 ImportsSamsung Austin SemiconductorSolectron TexasState Farm InsuranceTexas Commission on Environmental QualityTexas Governor's MansionThe Rebekah Baines Johnson CenterTokyo Electron America
R Corporate Champion Ad Package
TV ad – features company logo Billboards List names twice per year in three
newspapers Company logo in EnergyPlus
customer newsletter GreenChoice logo available for
company’s use in its advertising
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Status (as of Oct 1, 2005)
GreenChoice launched mid-Jan 2000 Began billing April 2001 Over 6,500 residential customers
enrolled 30 large commercial subscribers 170 small businesses Green Energy = 300 million kWh/yr.