Is North American Power Green?
By TIM
FAULKNER/ecoRI.org News staff
Ratepayers are getting a stream of offers to switch from
National Grid to another electric supplier. Is it worth it? North American
Power’s TV and mail campaign is clearly saying “Yes.”
North American Power says it saves money by buying
electricity at wholesale prices and simply selling it to ratepayers for less
than National Grid. The practice of buying electricity from a non-regulated
power producer (NPP) like North American Power has been happening since 1998.
Large power users such as manufacturers and school districts typically shop
around for contracts to get the best deal on its electricity by buying from
third parties.
Residential
customers have the option as well. The East Greenwich company First Point Power has offered
this service for several years. North American Power, however, is the first to
step out with a huge marketing campaign. Thomas Kogut, chief of information for
the Rhode Island Division of Public Utilities and Carriers (PUC), called the
scope of the company's mail and TV campaign “unprecedented.”
Kogut
said the solicitation from North American Power is much like a credit-card
offer with a teaser rate. The rate offered by North American Power or other
NPPs is only fixed for a few months before it readjusts. The price can go up or
down after the initial term ends based on the contract an NPP gets with a
wholesale seller of electricity. The PUC keeps a list of providers where
ratepayers can shop for the best price. Not all offer residential service,
however, so it requires time and research to shop around.
“You
have to be a knowledgeable consumer,” Kogut said.
Based on
the current offer from North American Power, residential customers who switch
would save $8 a month through June, when the rate ends.
Save
green?
The standard program with North American Power offers 25 percent renewable energy; National Grid's standard electricity service contains 8.5 percent renewable energy.
National
Grid, however, lets customers buy renewable energy through approved third-party
providers. The average residential customer pays about $14 more a
month for a 100 percent renewable-energy program through a third-party
provider. North American Power offers similar pricing for its 100 percent
green-energy plan, which is about $2 less a month than the National Grid
program.
One of
National Grid's renewable-energy providers, People’s Power & Light (PP&L), is
advising customers not to make the switch. Ratepayers can't continue with
PP&L's renewable-energy program if they leave National Grid, and PP&L
says the renewable energy from North American Power and other NPPs doesn't come
from or support local renewable-energy programs.
Priscilla
De La Cruz of PP&L said the financial incentive isn't enough to make the
switch. “The solicitations might look appealing on paper, but we don't think
the savings add up to much — and definitely not enough that they should stop
you from supporting local renewable energy.”
Kogut
said National Grid likely isn’t losing sleep if ratepayers switch to acquire
electricity from another source. “They don’t make money on that," he said.
"They make their money on the wires and meter system."
So, if
saving money is the main focus, than actively shopping for providers will
likely save ratepayers a few dollars, he said. “The answer maybe yes, but you
still have to do your homework."