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Facilitating a Green Market – Unleashing the Power of Consumer Choice through Appropriate Rules

Facilitating a Green Market – Unleashing the Power of Consumer Choice through Appropriate Rules. Fourth Annual Green Power Marketing Conference May 10, 1999. U.S. Generating Company. PG&E Corp.’s non-utility generating business -- a $6 billion -- 7,700 MW -- 30 plant portfolio

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Facilitating a Green Market – Unleashing the Power of Consumer Choice through Appropriate Rules

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  1. Facilitating a Green Market – Unleashing the Power of Consumer Choice through Appropriate Rules Fourth Annual Green Power Marketing Conference May 10, 1999

  2. U.S. Generating Company • PG&E Corp.’s non-utility generating business -- a $6 billion -- 7,700 MW -- 30 plant portfolio • Develops, manages, and operates highly efficient, low-cost generation • Natural gas, coal, waste coal and hydro • Developing more than 8,500 MW of new “merchant” generating capacity • Actively participating in green market proceedings at federal/state levels

  3. A vibrant green power market can improve environmental quality • Consumers are educated and informed • Information is accurate • Appropriate guidelines and rules are in place

  4. Market participants have huge stake in protecting consumers from deceptive advertising • Self-regulation through deceptive advertising guidelines • Start simple, add guidelines as experience grows • Rely on principles and provide guidance • Encourage uniform rules/definitions/programs from state to state • Promulgate substantiation standards equivalent to those in other industries • Allow marketers to complement state consumer education programs

  5. Regulatory programs should backstop market • Disclosure - retail suppliers provide information on environmental, other attributes of energy sold to customers, via printed label • RPS - retail suppliers provide minimum levels of power from renewable sources in their portfolios • GPS - retail suppliers meet minimum environmental performance standards for specific pollutants, on a portfolio basis, in a specified state or region

  6. Programs require verification of accuracy of reported environmental information • Verification system should: • produce accurate information • be flexible and cost-efficient • be uniform throughout markets

  7. System design must accommodate commodity energy markets • Separate environmental attributes from energy • Provide ability to trade attributes as a separate commodity • “Tradable environmental certificates”

  8. Consumer credibility issues must be addressed through system design and education • Electron trail • Geographic limits • Double-selling • Deceptive advertising

  9. Demonstration programs are underway • Conversion Transactions • New York’s Environmental Disclosure Order 12/98 • New Jersey’s Disclosure Order – Phase II (likely) • USGen’s label verification pilot in Massachusetts

  10. Give markets a chance… • Build on verification programs underway • Expand in scope and area as experience is gained • Support self-regulation efforts

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