The LG&E and KU Green Energy program is voluntary. By purchasing Green Energy certificates, you are taking action to expand the generation capacity of renewable power that serves the Kentucky electric grid.
Since renewable energy is more expensive to develop than traditional forms of energy, our customers' willingness to pay more helps to make Green Energy financially feasible.
Detailed version of how it works
The "difference" (which represents the environmental benefit of the green power) is sold in the form of Renewable Energy Certificates (RECs). Voluntary purchases of RECs are a primary driver behind the current growth of renewable energy in the U.S. Because LG&E and KU are required to supply energy at the lowest possible cost, customers' voluntary purchases of this higher cost energy source are necessary to renewable energy developers to develop more projects.
By enrolling in the LG&E and KU Green Energy program, you pay for the supply and distribution of your electricity (roughly six cents per kWh), plus the extra amount for the benefits of the specific renewable energy electrons that are on the grid. Since LG&E and KU are offering Green Energy at $5 per block of approximately 1800 kWh, this means that you pay about 0.3 cents extra per kWh (for each block of Green Energy you purchase).
For your convenience, LG&E and KU allow you to pay the difference at whatever level you choose. The average LG&E and KU household consumes an average of about 1000 kWh of electricity each month, and Green Energy is being offered for $5 per 'block' of approximately 1800 kWh. Therefore, to support renewable energy in an amount equal to that of the average household, you may purchase one block (1800 kWh) of Green Energy for $5 per month, or you may personalize your level of purchase by using the Green Energy Calculator.
At whatever level you choose to participate, we ensure that for every kWh of Green Energy you purchase, the equivalent amount of renewable energy is being generated and delivered onto the electric grid serving Kentucky, stimulating the local renewable energy economy. It is important to note that this Green Energy program is prioritizing new renewable energy generation in Kentucky. If you decide to purchase Green Energy at any level, thank you very much for making the difference by paying the difference.
Additional information about renewable energy certificates (RECs)
This product is comprised of RECs. With the purchase of RECs, you are buying the renewable attributes (i.e. environmental benefits) of a specific amount and type of renewable energy generation. You will continue to receive a separate electricity bill from your utility. Your purchase of renewable certificates helps offset conventional electricity generation in the region where the renewable generator is located. Your purchase also helps build a market for renewable electricity and may have other local and global environmental benefits. The renewable certificates in this product are verified and certified by Green-e Energy. Each supplier of renewable certificates is required to disclose the quantity, type and geographic source of each certificate. Please see the Product Content Label for this information. Green-e Energy also verifies that the renewable certificates are not sold more than once or claimed by more than one party. For information on Green-e Energy please visit its Web site, www.green-e.org, or call them toll-free, 1-888-63-GREEN.