Boulder deal is largest corporate purchase of renewable energy
By Eric Schmidt, Camera Staff WriterJanuary 11, 2006
Whole Foods Market has contracted with a Boulder company to offset all of its electric needs with wind power in the largest-ever corporate purchase of renewable energy.
Announced Tuesday, the
deal makes Austin, Texas-based Whole Foods the only Fortune 500 company to buy wind-power credits equivalent to 100 percent of its electricity use, according to a news release.
The natural grocer's purchase of 458,000 megawatt-hours in credits from Boulder-based Renewable Choice Energy will replace the electricity used at all its stores, offices and other facilities in the United States and Canada and eliminate 700 million pounds of carbon dioxide pollution in the coming year.
"This is an ongoing commitment that Whole Foods has to the environment," spokesman Scott Simons said. "We really wanted to make a big statement in our communities and say this is something we're strongly committed to."
The company's shift to wind power began in the Rocky Mountain region several years ago and spread across the country, Simons said.
"The Boulder store actually had a very big hand in the wind-power movement," he said. "Louis Karp, who used to run the Boulder store, was instrumental in developing a wind-power program for our company."
Karp, who now works for Whole Foods in Denver, could not be reached Tuesday.
Shares of Whole Foods (NASDAQ:WFMI) rose 55 cents Tuesday to $78.18.
Renewable Choice, whose clients include Johnson & Johnson, Sprint and the city of Boulder, acts as a broker between wind farms and customers who want clean, sustainable energy, said Quayle Hodek, chief executive officer. Because it's impossible to direct wind energy to specific locations on the national power grid, the transaction works by selling consumers wind credits equal to the amount of coal- or gas-fired electricity they normally use.
Neither company would disclose terms of the Whole Foods deal.
Wind power generally costs a premium of about 2 cents per kilowatt-hour for residential customers — around $15 monthly on top of an average family's electric bill — Hodek said, although larger businesses can negotiate discounts. [
A Gainesville green building project was recently quoted wind power from the same Boulder firm for an 0.8 cent/kwh premium.-DN]
The agreement is an unprecedented sale for Renewable Choice, and an example for other energy users that wind power is a viable alternative to fossil fuels, Hodek said.
"It really helps us on a national level to be able to communicate more effectively with a lot of the other Fortune 500 (companies) that are looking to do this," he said. "And from a residential customer perspective, our customers are always excited when they see more companies signing up."
Contact Camera Staff Writer Eric Schmidt at (303) 473-1628 or schmidte@dailycamera.com.
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