From the inbox: questions about our environmental and energy efficiency investments
Thursday, November 8, 2012
We work hard to regularly communicate the how’s and why’s behind our operations and plans for the future, but we understand that our industry is complex, and often the full story isn’t told.
Your questions and feedback are important to us, and providing you with straight answers and engaging in a two-way dialogue are part of why we launched this blog more than two years ago.
Let’s take a look at some of your more recent questions below, and break it down piece-by-piece. Check back often for more “From the Inbox” Q&As.
With environmental regulations getting stricter, why do you still burn coal?
We’re mandated by the Kentucky Public Service Commission to provide customers with least-cost energy and coal-fired generation has consistently met that requirement. In addition, Kentucky has some of the lowest energy costs in the nation, due in large part to its close proximity to vast coal reserves. Lower energy costs are important for economic development and, ultimately, jobs in the Commonwealth.
Even after our latest construction program is completed in 2015 to comply with more stringent regulations from the Environmental Protection Agency, coal-fired power will still make up a good majority of our company’s fuel mix.
As part of our compliance plan, we are retiring about 800 megawatts of coal-fired generation, and replacing it with a new natural gas power plant. In many cases, however, it was more cost-effective to retrofit or add pollution controls to our existing coal-fired units to further reduce emissions.
It’s also important to note that by 2016 – when more stringent EPA regulations take effect – we will have reduced emission rates for sulfur dioxide by 88 percent and nitrogen oxide emission rates by 83 percent since 1995. Over this same period of time, however, it’s critical to note that our customers have increased their use of electricity by more than 25 percent.
Why don’t you switch to renewables, which have zero fuel costs?
Every fuel has its advantages and challenges when you look at the complete picture. For instance, Mother Nature may provide wind and sun, but those “fuels” are not always available at the same time that our customers demand energy.
So, if on a hot summer day the wind isn’t blowing, or on a cold winter day and the sun isn’t shining, we’d need substantial back-up power to reliably meet peak energy demand and keep your lights on.
And, if we have to import renewable power from another state, it only adds to the cost. We take all of that into account when evaluating options for new generation.
Why don’t you invest more in energy efficiency and green energy?
We do. Energy efficiency is important to us and we offer a number of programs and services in which our customers can enroll to save energy and money.
The programs are part of our continued efforts to help customers use energy more wisely, offset annual customer energy demand growth that leads to additional generation, and help offset the potential customer rate impacts of federal environmental regulations. If customers take full advantage of our energy efficiency programs, our portfolio of residential and commercial programs has the ability to offset 500 megawatts of generation by 2018.
And, you can join our Green Energy Program to help expand the generation capacity of renewable power that serves the Kentucky electric grid. For just $5 per month, we can purchase approximately 1,800 kilowatt hours of Renewable Energy Certificates from renewable energy sources in Kentucky and adjacent states. Your voluntary investment helps offset the higher cost of renewable energy in our area.
You can find more information on all of our energy efficiency programs and tips by visiting www.lge-ku.com/savingenergy.
Until next time, keep using energy wisely.
