E.ON U.S. - Green Energy Program

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

Since renewable energy is more expensive to develop than traditional forms of energy, our customers' willingness to pay more helps to make Green Energy financially feasible.

Detailed version of how it works

As an example, if it costs roughly six cents per kilowatt hour (kWh) to produce and distribute traditional forms of electricity, and it costs about eight cents per kWh to produce renewable energy, consumers would need to pay eight cents per kWh to justify the production of renewable energy. In order to make the economics of renewable energy work, developers will, therefore, produce and deliver their renewable electricity onto the transmission grids for the cost of traditional forms of electricity (about six cents per kWh), and then find voluntary purchasers to help make up the difference (two extra cents per kWh).

The "difference" (which represents the environmental benefit of the green power) is sold in the form of Renewable Energy Certificates (RECs). Voluntary purchases of RECs are a primary driver behind the current growth of renewable energy in the U.S. Because LG&E and KU are required to supply energy at the lowest possible cost, customers' voluntary purchases of this higher cost energy source are necessary to renewable energy developers to develop more projects.

By enrolling in the LG&E/KU Green Energy program, you pay for the supply and distribution of your electricity (roughly six cents per kWh), plus the extra amount for the benefits of the specific renewable energy electrons that are on the grid. Since LG&E and KU are offering Green Energy at $5 per block of 300 kWh, this means that you pay about 1.7 cents extra per kWh (for each block of Green Energy you purchase).

For your convenience, LG&E and KU allow you to pay the difference at whatever level you choose. The average LG&E and KU household consumes an average of about 900 kWh of electricity each month, and Green Energy is being offered for $5 per 'block' of 300 kWh. Therefore, to support renewable energy in an amount equal to that of the average household, you may purchase three blocks (900 kWh) of Green Energy for $15 per month, or you may personalize your level of purchase by using the Green Energy Calculator.

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, stimulating the local renewable energy economy. It is important to note that this Green Energy program is prioritizing new renewable energy generation in Kentucky. If you decide to purchase Green Energy at any level, thank you very much for making the difference by paying the difference.

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LG&E Customers KU Customers