Click here to return to IRED.com
Navigation Tabs


Mortgage Lenders Tools for Agents Consumer Services Ratings and Icons Descriptions USA Realty Directory International Realty Directory Add or Enhance a Link in the IRED Directories Advertising on IRED Information about IRED Site Map

Stuart Lieberman
Stuart Lieberman, Esq.
liebermanblecher.com

*NJ Deputy Attorney General assigned to the State Department of Environmental Protection from 1986 - 1990.
*Partner in the environmental law firm of Lieberman & Blecher, P.C. in Princeton, New Jersey
*Lectures for the N.J. Institute for Continuing Legal Education (ICLE), and is available for other speaking engagements through the year.


The Environment
Lieberman Archives
US Environmental Protection Agency


Attitude & News Home

Directories
  Int'l Realty
  US Realty



THE ENVIRONMENT
WISCONSIN PUBLIC SERVICE HELPS ITS CUSTOMERS SAVE MONEY AND THE ENVIRONMENT
Stuart Lieberman, Esq.,

How well do you regard your electric service or natural gas provider? Answers vary, some people are happy with the service they receive and the price they pay, and others are down-right miserable. In Long Island, people were so upset that their natural gas provider, LILCO, was recently disbanded.

The utility business is changing. One major change that is beginning to sweep the county is called deregulation. It used to be, and in most places still is, the case that one provider had an exclusive franchise to sell natural gas and electricity to a given community. While this fostered some measure of reliability, the lack of competition was blamed for increased pricing.

The emerging trend is to do away with the notion that one company has an exclusive franchise for a given area. In the few states where deregulation has thus far taken hold, various suppliers compete for their customers. And guess what, often prices have come down.

Interestingly, however, price is not the only thing that customers seem to look for when choosing a utility supply company. In fact, many people have shown a willingness to pay more money for electricity that is produced in a manner that does not harm the environment. This is called green electricity, and people want green electricity.

So what does all of this mean to the old time traditional electric supply companies? Even in areas where there has not been any movement toward deregulation, the writing is on the wall. Since the States that have thus far gone this route, including California, Pennsylvania, and now New Jersey, seem to report favorable outcomes, similar discussions will soon crop up in the holdout State Capitols.

Thus, the guys selling 100% of the electricity and gas now, must better position themselves with their customers so that they can continue to do well if there is deregulation, and in any event will strengthen their ties even if deregulation never takes place. In light of the fact that utility customers have proven with their pocketbooks that they will spend money to protect the environment, one way to enhance customer relationships is to provide environmentally friendly products.

Take, for example, Wisconsin Public Service. WPS services hundreds of thousands of customers in Wisconsin, and through a sister company, in Michigan's Upper Peninsula. It is hardly the new kid on the block, having been in business since 1883. Customers have enjoyed stable residential rates for the past ten years. You would imagine that a strong company such as this might sit back and do nothing to encourage increased customer loyalty. After all, with ten years of price stability, people seldom complain.

But that would be too cheesy for this Wisconsin utility. In the early 1990s, WPS engaged in a marketing campaign aimed at encouraging its customers to purchase energy efficient compact fluorescent light bulbs (or cfls). The utility subsidized the cost per household, and under this program, more than 500 thousand cfls were sold.

Cfls are the biggest thing since peanut butter when it comes to home and business lighting. Every reader needs to learn about these relatively new kinds of light bulbs. In recent years, the federal Department of Energy has actively promoted these bulbs for commercial and residential use. According to one of its studies, homeowners can save 35% in lighting costs if they make the switch. Indeed, the DOE has recently embarked on a program to convert bulbs used in its Washington headquarters to compact fluorescent lighting.

According to some studies,the amount of energy wasted by incandescent light bulbs is substantial. Quite startlingly, only 10 percent of the energy consumed by an incandescent bulb actually produces light. The remaining 90 percent generates heat that is wasted. By contrast, a much greater percentage of energy produces light in a cfl light bulb.

WPS recognized that its customers want to buy products that are good for the environment. WPS official Kevin Pitts recently informed me that the company also sells programmable thermostats and heavy duty timers to its customers. Other important products, such as carbon monoxide detectors, first aid kits, and security lighting are also sold. And WPS will enlarge its product line this fall, with a huge direct marketing and Internet program.

What all of this proves is that a utility company can do a lot to make money, while serving its customers and protecting the environment. How well is your electric and gas supply company performing? Can you purchase cfls at below retail or zero percent financing from your utility? Is it making other energy efficient products available to you? If the answer is no, ask why WPS and other utilities have been able to do these things, and simply insist that your company do the same.

The information provided in this column is written by Stuart Lieberman,a practicing environmental attorney, and is for general information purposes only. It is not legal advice and should not be used in place of legal advice.

Stuart Lieberman, Esq., and IRED.Com, Inc., will not accept any responsibilty for any reliance on the information in this column or any damages whatsoever resulting from reading this column.


| IRED Home | Search IRED |


© 1995-2008 IRED.Com, Inc
All Rights Reserved