LIPA Green Choice Program: FAQ

Below are some frequently asked questions regarding LIPA's Green Choice program provides information and assistance to Long Islanders on how they can become Green Power purchasers and help in the advancement of Green Power Resource development.

What is Green Power?
Green Power refers to electricity that is generated from “renewable” sources, such as wind, hydroelectric, biomass or solar energy. These sources create less pollution than burning fossil (oil, gas, coal) fuels.

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How much Green Power is already in use?
Currently, New York State has renewable resources totaling approximately 17% of the total electric generating capacity for the State. Governor George Pataki, in his State of the State Address in 2003, directed the Public Service Commission to require additional development of renewable resources leading to a 25% contribution of total energy supplies within 10 years.

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How do I learn about Green Power in New York State?
A toll-free hotline has been established so that anyone in NYS can call for information on purchasing green energy resources. That number is 1-866-GRN-POWR, or 1-866-476-7697.

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What is LIPA doing about Green Power?
LIPA continues to solicit proposals from developers to build additional renewable resource projects, such as the Offshore Wind Farm Project. Many of these projects may take 3-4 years to complete. In order to provide customers with an opportunity to participate today in renewable resource development, LIPA has proposed the LIPA Green Choice Program to allow customers to encourage the availability of Green Power. Additionally, LIPA has a Solar Pioneers program that encourages residents and businesses on Long Island to install their own Green Power facilities.

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What is the LIPA Green Choice Program?
LIPA Green Choice program provides information and assistance to Long Islanders on how they can become Green Power purchasers and help in the advancement of Green Power Resource development. This program will allow customers to purchase Green Power from specialized “Green Power Marketers”.

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How will the LIPA Green Choice Program work?
There will be a number of “Green Power Marketers” from whom LIPA customers may consider purchasing Green Power generated from wind, or from a mix of wind, hydro, and biomass sources. A customer may choose to apply all or part of their energy purchase each month to one of these renewable power offerings.

The “environmental benefit” of a Green Power resource is determined by the amount of polluting emissions that a green power source displaces or avoids. Environmentally minded consumers are willing to pay more for energy if they know it was generated from Green Power resources.

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Is LIPA Green Choice similar to Long Island Choice? Do customers purchase their energy from another supplier?
Customers enrolled in LIPA Green Choice will make a purchase from energy services companies who specialize in marketing renewable resources. Unlike Long Island Choice, the customer will not actually purchase the electricity, but will purchase the “green attributes” of that electricity. Green Power marketers need to certify to the NY Public Services Commission that they have purchased the attributes of green power that is then delivered into the electric grid serving all of New York State. The marketer must then also provide assurance that each customer purchasing the Green attribute receives the value for that purchase.

With Long Island Choice, the Energy Services Company (ESCO) delivers energy on behalf of their customers to the NY electrical grid. Similarly, under LIPA Green Choice, the Green Power marketer needs to make sure that green power is delivered to the NY grid, and that the Green marketer’s customer gets the “rights” to that green power.

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What is a “Green” attribute?
A Green attribute is the value of the environmental benefit that a Green Power plant creates. It is more expensive to build power plants that generate power from green or renewable sources than it is to build fossil fuel plants. A Green Power resource can sell its electric energy output as well as its green attributes. Participation in the purchase of these products encourages the development of more Green Power plants.

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Is the Green Power delivered to my house?
Because all of the electric energy feeding New York State is fed into a common electrical grid system, it is impossible to guarantee that only green energy is delivered to any one location. The New York State Public Service Commission tightly regulates the marketing of Green Power so that customers can be assured they will receive the environmental benefits of the green product that is purchased.

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Will I receive a separate bill for Green Power?
LIPA will include, as a separate line item, the charges from the customer’s selected Green Marketer on their electric bill. The selection of any Green Power purchase will increase a customer’s normal LIPA bill. These increases are dependent on the green product selected and will probably amount to a few dollars increase each month.

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How much could the Green Power cost?
Green Power attributes could cost up to 2.5 cents per kilowatt hour. The average residential customer on Long Island consumes approximately 768 kWh per month. At 2 cents per kWh, it would cost the average residential consumer as little as $7.68 per month extra to have 50% of their power designated as Green Power.

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How much Green Power can one purchase?
Currently, customers will be able to designate either 50 or 100 per cent of their electricity consumption as Green Power. The LIPA Tariff does allow for 25, 50, 75 or 100 per cent levels, but due to the current economics, Marketers are offering only the 50 and 100 per cent options. As participation increases, LIPA expects to see the available options increase as well.

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If a customer no longer wants to be part of the Green Power program, can they eliminate the Green Power selection?
Yes. Customers can either drop the program or switch suppliers by notifying LIPA at least 10 days before the first of the month.

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Is LIPA Green Choice a voluntary program?
Yes. Only customers who select to purchase Green Power will be billed for the block, or percentage, of Green Power that they wish to buy. LIPA customers who do not wish to participate in the program will not be charged nor will they subsidize the LIPA Green Choice program in any manner.

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Does LIPA waive the Power Supply Charge for Green Choice Customers?
LIPA cannot waive the Power Supply Charge for LIPA Green Choice customers. LIPA continues to purchase the electric energy commodity used by LIPA Green Choice customers, and does not realize any fuel cost reductions.

LIPA Green Choice customers are actually purchasing “environmental attributes" associated with LIPA Green Choice, not the electric energy commodity. The environmental attribute represents the emissions avoided from renewable generation, compared to conventional fossil-fueled generation. Customers still purchase the electric energy commodity from LIPA.

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