Yesterday, the Federal Trade Commission gave a light wrist-slap to Green Mountain Power, telling GMP to “be more clear” in how it advertises renewable electricity while closing the books on a complaint of deceptive marketing.
The allegation had come from the usually reliable folks at the Vermont Law School, and in particular the unreliable Kevin Jones, who’s had a bee in his bonnet for years about Vermont’s SPEED program, which allows utilities to sell renewable energy credits out of state. Jones’ complaint is that selling RECs is basically a shell game, allowing Vermont utilities AND the out-of-state REC buyers to both claim they’re producing “green energy.”
Technically true, but with a couple of giant caveats.
SPEED was designed to encourage development of renewables at a time when they were not financially competitive. Vermont utilities could build renewables and recoup some of their costs through the sale of RECs, thus cushioning the blow to ratepayers. And it was designed from the beginning to be a temporary program; it will expire in 2017, and the legislature is crafting its replacement this year. SPEED is going away on schedule, having achieved its mission.
Jones also ignores the fact that, whether or not RECs were sold, their sale allowed us to adopt renewables more quickly than we could have otherwise. Real power was generated, and it reduced the overall need for fossil fuels.
The complaint also seems to rely on a misperception of electricity generation and consumption. Power enters the grid from all kinds of sources, is distributed through the grid, and consumed — all in real time. Unless you live off the grid, there’s no telling where your electricity comes from at any given moment. GMP can promote its commitment to renewables, but it cannot promise you that your power comes from the solar farm down the road, a hydroelectric dam in northern Quebec, a fossil fuel-burning plant in Massachusetts, or the big nukes at Seabrook. That’s true with our without SPEED.
I wrote about this a couple months ago and you can read more there, so I won’t belabor the point here. Suffice it to say I’m glad to see the FTC close this case. And once the legislature passes the next iteration of power regulation, I wish Mr. Jones luck in finding a new binky.