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Green Pricing

Although there is no standard or definition for environmentally friendly fuels, they generally are considered to consist of hydroelectric power, solar electricity, wind energy, biomass energy, and geothermal power.* These alternative fuels are inexpensive, low polluting, and often renewable.* Although natural gas is not an alternative fuel, it is considered clean burning due to its low emissions.

Consumer support for the use of renewable and clean-burning fuels has led to the creation of green pricing structures, which allow a higher electric rate for these more environmentally friendly fuels. Currently, less than 1 percent of the electricity generated in Texas comes from renewable fuels.* Even though the current use of renewable energy sources is relatively low, Texans support the use of clean-burning and renewable fuels in electricity production. In fact, three separate public opinion polls taken in the summer of 1996 and one poll taken in the spring of 1997 indicate that Texans are very concerned about pollution and are willing to pay more on their electric bill for lower-polluting fuels.*

The City of Austin Electric Utility's Solar Explorer program is one green pricing option for city residents. Utility customers can support solar and wind power plants for an extra $3.50 a month added to their electric bill. The solar plant is a group of photovoltaic panels installed on rooftops of government buildings in the city.* Commercial building owners also can join the program by hosting a solar power plant on their building.

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