New Mexico Coalition for Clean Affordable Energy
Consumer Interest in Renewable Energy
Until recently, relatively little recent data existed on consumer interest in renewables in New Mexico. A small 1998 deliberated poll, however, sponsored by Public Service Company of New Mexico (PNM), suggested that:
- Slightly more than 30% of participants were willing to pay an average of $8.75 more per month for electricity derived from renewable sources.
- Roughly 80% of participants were willing to pay an average of $1.40 more.
The PNM data, although drawn from a relatively small set of focus groups, are found to be remarkably consistent with other nationwide data: In particular, the PNM data agrees very well with the averaged “Willingness to Pay” curve derived in a 1999 NREL study (NREL TP.550.26148), which averaged data from 14 utility-conducted studies from across the US.
The lower PNM data point (that 80% would be willing to $1.40 extra per month), when combined with (very conservative) cost estimates for the existing New Mexico Renewable Portfolio Standard, suggests that the existing RPS would be supported by at least 80% of the New Mexico public.
Support for the RPS Confirmed Directly:
This rough estimate was then confirmed by a statewide, scientific poll conducted by Greenberg, Quinlan, and Rosner (GQR) Research Inc. in February 2003: This poll found that 85% of New Mexican's support New Mexico’s 10% RPS rule when the rule was explained to them. This percentage decreased slightly to 82%, still extremely high, when subjects where exposed to strongly worded negative statements about the RPS rule, such as that it would increase bills substantially, and lead to a loss of jobs in conventional energy industries. A technical representative with GQR Inc., Mike Bocian, said the very high percentage of support found by the poll was “almost unheard of on environmental issues” in general.
GQR Research is a highly respected and objective polling firm - the same firm that conducts polls for Bill Richardson, Bill Clinton, and many other prominent politicians. This was in fact the largest and most comprehensive poll on interest in renewable energy in New Mexico to date. Results of the poll, which also covered the use of dry-cooling technology for power plants and global warming, can be found at:
http://www.sric.org/NRDCNM022503m2.pdf.
A comment about "actual willingness to pay":
Some utilities have complained that consumers sometimes don’t live up to their statements about their willingness to pay for renewable energy when it comes time to actually sign up to pay a premium for it. Evidence has emerged, however, that this has more to do with a sense of fairness than with interest in renewable energy.
For example, a deliberative poll in Nebraska in October 2003, sponsored by the Nebraska Public Power District (NPPD) (see http:www.nppd.com) found that 96% of electricity customers supported future investment in a 200-MW wind farm, even if it would add to the cost of electric bills, but also that the vast majority of the survey participants (94%) felt that the cost of building future renewable energy projects should be spread among all of the utility's customers.
Similarly, an August 2003 study from Ryan Wiser at Lawrence Berkeley National Labs found that customers prefer all ratepayers to pay any extra cost. The report addressed public opinion about three policy scenarios - an RPS where utilities purchase renewables and pass costs on to customers, a System Benefits Charge where a surcharge on electric bills is used by the government to support renewable energy, and a voluntary system where individual customers can opt to purchase renewable energy. The RPS type option was the most popular. The reference for this study is: "Using Contingent Valuation to Explore Willingness to Pay for Renewable Energy: A Comparison of Collective and Voluntary Payment Vehicles" LBNL-53239. Available at:
http://www-library.lbl.gov/docs/LBNL/532/39/PDF/LBNL-53239.pdf.
Support for a Solar Tax Credit: 89%!
Another statewide scientific poll of New Mexico voters in the spring of 2005 found that 89% of residents support a solar tax credit. This poll was conducted by Sanderoff & Sons, which is reputed to highly respected by the Albuquerque Journal.
