How the Green Energy program works

The LG&E and KU Green Energy program is voluntary. By participating, you are taking action to expand the generation capacity of renewable power on the regional electric grid that serves Kentucky.

Detailed version of how it works

The Green Energy program will use your monetary contributions to purchase Renewable Energy Certificates (RECs) on your behalf. A REC represents the property rights to the environmental, social, and other non-power benefits of 1,000 kilowatt-hours (kWh) of renewable electricity. RECs purchased by the program will be sourced from Kentucky or any of its bordering states.

When renewable energy operators generate 1,000 kWh of electricity, they have the option to create a REC to be associated with that 1,000 kWh of production. The creation of this REC decouples the raw electricity from its associated environmental benefit, effectively separating the sale of the two attributes. This provides a multitude of benefits to both renewable energy operators and those who purchase RECs.

For renewable operators, the sale of RECs offers another revenue stream that helps recover the high up-front capital costs of building the renewable generator. More revenue per unit of generation increases the likelihood of reinvestment in their operations. This reinvestment expands the economic viability of both the renewable energy operator and the industry at large.

For REC buyers, the purchase ensures exclusive ownership of the environmental and social benefits of the underlying electricity. When the Green Energy program purchases RECs on your behalf, only you can claim their associated benefits. For the calendar year 2018, every $5 contribution to the Green Energy program purchased roughly 1.15 RECs or 1,150 kWh of renewable (“Green”) energy. So, if you participated in 2018, every $5 you contributed would have purchased the rights to the environmental and social benefits of 1,150 kWh of renewable electricity.

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. At the end of every year the Green Energy program “retires” all RECs purchased in the prior year, ensuring they are not resold and that program participants are their only beneficiaries.

While the Green Energy program makes every effort to purchase RECs from renewable generators in Kentucky, we may also purchase RECs from any of Kentucky’s bordering states. This occurs when there is a significant difference in REC prices amongst Green-e certified generators in these states, when compared to REC prices from Green-e certified generators within Kentucky. Click here for more information about the resource type and location of RECs historically purchased by the program.

Summary of Prices, Terms and Conditions

green-e certified logo
LG&E and KU Green Energy is Green-e Energy certified, and meets the environmental and consumer-protection standards set forth by the nonprofit Center for Resource Solutions. Learn more at www.green-e.org.

Where does my money go? What does it buy?

The Green Energy program will use your monetary contributions to purchase Renewable Energy Certificates (RECs) on your behalf. A REC represents the property rights to the environmental, social, and other non-power benefits of 1,000 kilowatt-hours (kWh) of renewable electricity. RECs purchased by the program will be sourced from renewable operators in Kentucky or any of its bordering states, which are not owned by LG&E and KU.

Renewable energy has significant up-front costs and voluntary purchases of Renewable Energy Certificates is essential in helping operators recover those costs more quickly, encouraging reinvestment in the renewable energy economy. 

Click here for more information about the resource type and location of RECs historically purchased by the program.

Whom should I contact for more information?

Customer Service (LG&E, KU). Large commercial and industrial customers should contact their Key Account Representative for additional information.

How will I be billed?

You will see a line item on your monthly LG&E or KU bill reflecting the amount of your Green Energy purchase. The amount of your purchase will be included in the total amount due on each of your monthly billing statements.

How will Green Energy appear on my bill?

Small Green Energy — Homes and Small Businesses 
If you are a Residential (Residential Service rate) or Small Commercial (General Service rate) customer, you will see a $5 charge on each of your monthly billing statements for each block of Green Energy you purchase. You may purchase as many blocks of Green Energy as you choose.

Large Green Energy - Large Commercial and Industrial Customers 
If you are a Large Commercial or Industrial Customer (Power Service or Commercial/Industrial Time-of-Day rates), you will see a $13 charge on your monthly bill for each block of Green Energy you purchase. You may buy as many blocks of Green Energy as you choose. The amount of your Green Energy purchase will appear on your monthly bill and be included in the total amount due for as long as you participate. Partial blocks of Green Energy are not available.

Will the price of Green Energy change over time?

The cost of Green Energy will remain consistent for the foreseeable future. You would be notified well in advance of any changes in the cost of Green Energy.

What length of agreement is required?

There is no minimum length of agreement required. Participants remain enrolled until they choose to cancel. Green Energy customers can cancel at any time without penalty.

What other fees might I be charged?

No other fees apply.