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Article #5520

Customers Back Renewables

#5520
From: tomgray
Date: Mon, 19 Aug 1996 00:00
373 lines
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From: Tom Gray <tomgray@igc.org>

                              NEWS
              **************************************
              *             from the               *
              *  AMERICAN WIND ENERGY ASSOCIATION  *
              **************************************

For immediate release
August 19, 1996
Contact: Jessica Maier, (202) 383-2500

WIND AND SOLAR SCORE STRONGLY
IN WEST TEXAS UTILITIES SURVEY

     Renewable energy sources such as wind and solar walked off
with top honors in a detailed utility customer preference survey
conducted August 9-10 in Abilene, Tex., by West Texas Utilities
Co. (WTU), a subsidiary of Central and South West Corp.

     Results of the Deliberative Poll(TM), a two-day meeting in
which a scientifically selected random sample of WTU customers
talked over options for new electric power supply, were released
today.

     Wind and solar emerged as the preferred option, with 35% of
the participants supporting them, followed closely by energy
efficiency at 31%.  The other two options presented, buying
imported power from elsewhere and building a new fossil-fired
generating plant, trailed.

     "WTU customers clearly understand that renewable energy
sources such as wind are better for the environment, and provide
long-term, secure supply," commented Tom Gray, Director of
Communications for the American Wind Energy Association (AWEA). 
"In question after question, they expressed strong concern about
environmental issues and underlined their preference for the use
of environmentally-friendly resources."

     Examples of this viewpoint, Gray said, include the following
survey results:

o    When customers' first and second preferences were added
     together, renewables again placed first, with 65%, followed
     by efficiency (61%), power purchases (42%), and building a
     new fossil plant (37%).

o    Asked how much more per month they would be willing to pay
     to support each of the four options, customers said an
     average of $7.83/month for renewables, $4.49 for efficiency,
     $3.00 for fossil, and $1.98 for power purchases.

o    On a scale of 1-10, with 10 being "extremely important,"
     customers rated "reduce pollution" at 8.9.

o    On the same scale, "using a mix of different kinds of energy
     resources to avoid dependence" on a single source scored
     9.2.  (WTU today depends on natural gas for 65% of its power
     and coal for the balance.)

o    85% of those surveyed endorsed power plants that have higher
     construction costs, but predictable operating costs, over
     those with low construction costs and unpredictable
     operating costs.  This again points to a preference for
     renewables, which typically cost more than fossil plants to
     build, but have very low and predictable operating costs
     because they need no fuel.

o    On the 1-10 scale, "generation by technologies such as wind
     and solar power" scored 8.8, and "options that add an extra
     measure of environmental protection" 8.3.

     "The results of the WTU customer survey confirm those of
many polls taken over the past several years," Gray said. 
"People believe strongly in the need to protect the environment
to the degree possible, and they are ready to support renewable
energy with their votes and pocketbooks today.  We hope
decisionmakers in the utility and political communities will
start getting the message soon."
-----------------------------------------------------------
AWEA, formed in 1974, is the national trade association of the
U.S. wind energy industry. AWEA's membership of over 800 includes
turbine and component manufacturers, project developers,
utilities, academicians, and interested individuals from 49
states. 

More information on the WTU survey, from Central and South West
Corp. and from Karl Rabago of the Environmental Defense Fund
(EDF) is attached.  For additional information on past public
opinion survey results concerning renewable energy, see the FAQ
(Frequently Asked Questions) section of AWEA's World Wide Web
site at http://www.econet.org/awea  .
-------------------------------------------------------------

From: Karl Rabago <Karl_Rabago.EDF@smtpgw.edf.org>
Date: Wed, 14 Aug 1996 05:20:51 -0400
Subject: Re: WTU deliberative poll - cleaned version

We received the results of the West Texas Utilities Deliberative
Poll (tm) on August 14.  The following is my summary of the
results.  For more information, please contact me.  Please feel
free to repost with this header. 

Karl R. Rabago
Environmental Defense Fund
Energy Program
44 East Avenue, Suite 304
Austin, Texas 78701
Tel: (512) 478-5161
Fax: (512) 478-8140
krabago@edf.org
     
West Texans Want a Clean Energy Future for Everyone

"The customers of West Texas Utilities have spoken, and they want
a clean and renewable energy future," said Karl R. Rabago,
Environmental Defense Fund's energy program manager.  "Just as
importantly, they want all customers to share in the benefits of
electric service." 

West Texas Utilities (WTU) conducted a Deliberative Poll (tm)
with its customers in Abilene, Texas on August 9 -10, and the
results show strong preferences for renewable energy and energy
efficiency, as well as service equity.  Deliberative Polling
combines statistically valid polling with opportunities for
participants to deliberate among themselves and ask questions of
experts. 

WTU, a wholly owned subsidiary of Central & Southwest
Corporation, conducted the poll as part of a system-wide effort
to gauge customer preferences.  WTU and its sister-companies,
Central Power & Light and Southwestern Electric Power Company,
will use the results of these polls to prepare an integrated
resource plan to be submitted for PUC approval in November. 
Rabago participated in the polling exercise as an expert on
renewable energy and environmental matters. WTU says it will need
approximately 250 MW of new electric capacity in 2000.  Customers
were asked to voice their opinions on a variety of matters, and
on their preferences for meeting rising demand for electric
services. 

Highlights of the poll results include:

* Customers prefer solar and wind energy options above all others
when asked which option WTU should pursue first (35%).  A close
second was energy efficiency (31%).  An identical poll conducted
before the deliberation showed stronger support for renewable
energy (71%), and virtually no support for energy efficiency as
an option (7%).  Renewable energy was the choice of 30% of
customers the utility to pursue second (growing from 14% before
deliberation);  24% of customers said pursue energy efficiency
second (decreasing from 40% before deliberation).  Although
pre-deliberation support for renewable energy was stronger, the
considered opinion of a statistically valid sample of WTU's
customers clearly supported clean energy options.  When first and
second options are taken together, renewable energy (65%) and
energy efficiency (55%) are preferred over the "buy wholesale
power" option (42%) and the "build a fossil fuel plant" option
(37%). 

* Customers are willing to pay more for clean energy options. 
The average amount customers are willing to pay each month for
renewable energy was $7.83--more than twice what they are willing
to pay for fossil fuel energy ($3.00), or purchasing power
($1.98).  WTU's customers are willing to pay $4.49 per month for
energy efficiency improvements, and also expressed a willingness
to pay an average $5.34 per month for options that "add an extra
measure of environmental protection." 

* Customers have strongly held values concerning the environment
and equity.  On a scale of 1 to 10, with 10 representing
"extremely important," the following issues scored 8 or higher: 

---Reduce pollution      8.9
---See to it everyone has their basic needs met   8.9 
---To promote economic growth in the community  8.6

When asked similar questions on the issue of electric power, customers also 
voiced strong support for:

---Utilities reducing their use of natural gas and coal by
helping their customers use energy more efficiently 8.3

---Utilities tailoring rates and energy management programs to
make sure that low income customers are treated fairly.  8.2

---Utilities carrying out research to develop better ways of
producing and delivering power to customers even if that means
paying higher electric rates.  8.0

*Customers also issued explicit instructions on generation
diversity and renewable energy to WTU--and demonstrated a keen
understanding of the characteristics of electric service options. 
When asked what the utility should consider in meeting electric
needs in the region, the following characteristics (on a scale of
1 to 10, with 10 representing "extremely important") scored 8 or
higher: 

---Using a mix of different kinds of energy resources to avoid
dependence on a single type of resource [WTU generates
electricity with coal (35%) and natural gas (65%) today].  9.2

---Using renewable resources such as the wind or sun.    9.0

---Using resources that maintain current levels of environmental
quality.  8.2

---Using resources that can be quickly increased or decreased in
quantity as customers come into or leave the system.  8.0

A full 85% of customers also prefer projects with high
construction costs but very steady operating costs over projects
with low capital costs but a more unpredictable operating cost
(4%). 

* Customers have strong opinions on WTU planning
priorities--preferring renewables and efficiency over other
alternatives.  On a scale of 1 to 10, with 10 representing
"extremely important," the following options scored 8 or higher: 

---Generation by technologies such as wind and solar power.   8.8 

---Options that add an extra measure of environmental protection.  8.3 

---Services and technologies which reduce the need for additional
electric generation facilities.  8.0

* Customer concerns about environmental problems were very
strong.  70% of customers said global warming is a very serious
(27%) or somewhat serious (43%) problem.  75% of customers said
air pollution in Texas is a very serious (17%) or somewhat
serious (58%) problem.  Customers were not very optimistic about
the air pollution problem, with 43% saying they expected the
problem to get worse and 26% saying the problem is likely to stay
the same. 
     
"These Deliberative Poll (tm) results should send a strong
message to WTU about what it takes to satisfy customers.  WTU
better get to work on renewables and efficiency in a serious
way," said Karl R. Rabago.  "This kind of process is a bold and
essential move by the company--absolutely essential in an era
where competition could make customer satisfaction the only real
measure for business success."  The results of this poll will be
considered in forming WTU's integrated resource plan.  "The
issues now are whether WTU will reflect customer preferences in
the plan, and whether the Public Utility commission will give
customer preferences real weight in evaluation of that plan,"
said Rabago.  "Everyone says customers will rule in the
competitive future--WTU and the PUC now have an opportunity to
make that slogan into reality." 

West Texas Utilities Company Customers Want Mix of Options to Meet Future
Electricity Needs
   
   DALLAS--(BUSINESS WIRE) Central and South West Corporation (NYSE: CSR) 
   said that customers of its West Texas Utilities Company subsidiary want 
   a mix of options to meet their future electricity needs, according to 
   the results of WTU's West Texas Town Meeting on Electricity Issues. 
   Customers also want WTU to include new alternatives for supplying 
   electricity and they are willing to pay more for these alternatives, 
   especially energy efficiency programs and wind and solar generation.
   
   The meeting was held Aug. 9-10 at Hardin-Simmons University in
   Abilene. The 253 participants represented a scientific random sample
   of the entire WTU service territory. The group participated in a
   "Deliberative Poll(TM)," a new process used to determine what the
   public would think about specific issues if given an opportunity to
   learn more about all sides of those issues. Participants were surveyed
   both at the time of recruitment and after the event.
   
   WTU focused on the issue of how to meet the increasing demand for
   electricity in the future. WTU projects that the area will need an
   additional 150-250 megawatts of electricity sometime between the 1998
   and 2001 time period. There are four basic options to meet this future
   need: 1) increase efficiency of current energy resources through
   customer and company programs that would reduce the future need for
   additional electricity; 2) buy power and transport it into the area;
   3) build a fossil fuel plant that uses natural gas or coal; or 4)
   build renewable energy plants.
   
   "We spent two full days in deep conversation with our customers," said
   WTU President Floyd Nickerson. "They learned a lot, but more
   important, we learned a lot about what values they place on the four
   options. We intend to incorporate our customers' views into the plan
   that we develop to meet our future electricity needs."
   
   Participants in the town meeting discussed the advantages and
   disadvantages of each of these options in both large- and small-group
   settings. They questioned experts representing differing viewpoints.
   One large group session included a discussion with representatives
   from the Public Utility Commission of Texas. Highlights of that
   session are scheduled to be broadcast Saturday on Abilene's KTXS News
   12 at 6 p.m.
   
   "The sample of customers was extremely representative of WTU's
   customer base," said Professor James Fishkin, chairman of the
   Government Department at the University of Texas at Austin and
   originator of the concept of the Deliberative Poll(TM). "It was as if
   all of WTU's 187,000 customers were in the same room discussing these
   issues.
   
   "The participants loved the process," Fishkin continued. "Seventy-one
   percent gave it a perfect '10' on a 10-point scale and another 22
   percent gave it either a '9' or an '8.' Only three people out of the
   230 residential participants gave it a rating of '5' or less."
   
   Participants indicated that WTU should select a mix of energy
   resources as the best approach to meet the future need rather than
   relying on a single option. Ninety percent of the respondents rated
   the importance of using a mix of resources as an "8", "9" or "10" on a
   10-point scale.
   
   "Customers in the residential sample clearly have multiple
   priorities," said Dr. Will Guild, research psychologist for the poll.
   "Before the Deliberative Poll(TM), respondents tended to concentrate
   very strongly on meeting the need through renewable resources," Guild
   explained. "After the event, there was much more diversity about which
   options participants thought WTU should pursue. In particular, they
   placed increased emphasis on energy efficiency and buying wholesale
   power."
   
   Support for wind and solar as a first-choice option went from 71
   percent to 35 percent, while support for increased energy efficiency
   went up from 7 percent to 31 percent during the deliberations. Yet,
   Fishkin noted, support for wind and solar as one the top choices
   remained the highest of any option -- 65 percent of the participants,
   after the deliberations, held this option as either their first or
   second choice. "These shifts are dramatic and statistically
   significant," Fishkin said. "The public thought about the issues, and
   they became more informed and more consistent in their views."
   
   "Participants want WTU to explore alternative sources of electricity
   such as wind and solar power and they are willing to pay more to have
   those resources as a part of the energy mix," Guild said. "For
   example, the average amount that participants were willing to pay was
   $7.83 a month, and 50 percent said that they would be willing to pay
   at least $5 or more.
   
   The results of the Deliberative Poll(TM) will be evaluated as a part
   of the integrated resource plan that WTU plans to file with the Public
   Utility Commission of Texas this fall. While the ultimate
   responsibility for WTU's resource plan falls on the company, the
   results of the poll send some very clear signals regarding customer
   preferences, Nickerson said.
   
   "Through this process we have reached a new level of partnership with
   our customers," Nickerson said. "We plan to continue the dialogue that
   has been established with these participants by communicating with
   them every step of the way throughout the filing of WTU's integrated
   resource plan."
   
   Central and South West Corporation pioneered use of Professor
   Fishkin's Deliberative Poll(TM) process to gather informed public
   opinion. Central Power and Light Company used the process in Corpus
   Christi June 1-2, and Southwestern Electric Power Company will hold a
   Deliberative Poll(TM) in Shreveport August 23-25.
   
   Central and South West Corporation is a public utility holding company
   based in Dallas. Central and South West owns four electric operating
   subsidiaries in the United States, a regional electricity company in
   the United Kingdom, and non-utility subsidiaries that offer
   independent power production, telecommunications, energy efficiency
   and financial transactions.
   
   CONTACT: Media: Larry Jones, | senior communications consultant, |
   214/683-3703, or | Financial community: Sharon R. Peavy, | director,
   investor relations, | 214/777-1277, | both for Central and South West
   Corporation, | Internet: corpcom@csw.com.
   
   [08-16-96 at 16:56 EDT, Business Wire]
   
       
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From: tomgray@igc.org
Subject: Customers Back Renewables
Date: 1996/08/19
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