Phillips Community Energy Cooperative: Consumers Control Energy Use

The goal of the Phillips Community Energy Cooperative (PCEC), led by the Green Institute, and supported by Xcel Energy and the Minnesota Department of Commerce, is to create an urban energy cooperative that gives energy consumers greater control over their energy usage and to link conservation programs with under-served populations. To achieve these aims, the PCEC delivers energy conservation-related services at the reduced costs that can be achieved by the larger membership base associated with a cooperative.

Phillips Community Energy Cooperative puts into practice the idea that as more people come together, they are better able to influence their local energy system. By setting realistic goals and providing a mechanism for community members to get involved, the project makes success attainable and enables future growth.

Currently, there are over 2,500 members in the PCEC. The number of members keeps growing with the continual outreach to diverse communities. The PCEC is working on initiating outreach to faith-based communities, landlords and renters, non-English speakers, as well as small businesses in the Phillips neighborhood. They have also established the “energy captain” program, in which leaders from the PCEC membership organize their street block to promote energy efficiency and membership to the PCEC.

Phillips community residents can join for $1 and receive a free “energy efficiency” kit which includes: two compact fluorescent light bulbs, one low-flow shower head, and a 5-pack interior window insulation kit. The kit has a retail value of over $30, but is free for PCEC members who live or own property in the Phillips community. To date, PCEC has distributed more than 2,500 kits.

The PCEC has distributed over 3,800 compact fluorescent light bulbs (CFLs) in the Phillips neighborhood. Each CFL light bulb that replaces an incandescent light bulb saves $51.00, which totals up to be $193,800 in savings for the Phillips Cooperative members. The average CFL lasts 10,000 hours, more than 13 times longer than incandescent light bulbs. Over their lifetimes, each bulb prevents the release of 1,000-2,000 lbs of carbon dioxide from coal-fired power plants; 25 milligrams of plutonium from nuclear plants; or the use of 1.25 barrels of oil.

In May 2004 the PCEC held a window air conditioner trade-in event. Old, inefficient, window a/c units were traded in for new efficient window a/c units for $100. The new a/c unit qualifies for Xcel Energy’s $30 mail in rebate. PCEC members will end up paying $70 for one of the most energy efficient window a/c units on the market.

“We’re really sharpening our focus on the rental market, since that’s where two-thirds of the Phillips residents live,” said Carl Nelson, Energy Program Director at The Green Institute.

As a traditionally underserved group, renters are often stuck with inefficient appliances because the landlord has little incentive to make improvements.

The PCEC hopes to change that, and they are starting with a refrigerator upgrade program at the Little Earth of United Tribes Housing Corporation. The program will replace the old refrigerators with Energy Star machines, and because the program allows the housing unit to buy the appliances in bulk, the owners of the housing units will see a significant savings as well, Nelson said.

“The refrigerator is typically the largest user of electricity,” he said. “Electricity use from refrigeration will be cut by one-third in some cases, and residents will see a significant reduction in their electricity bills.”

The program, which will replace the refrigerators in two waves, should be completed this winter.

The PCEC has also developed a relation-ship with a local business, Wellna Hardware. If coop members sign up at the store, they can get discounts on energy efficiency products like window insulation kits, weatherization products and compact fluorescent light bulbs.

“The store can show their customers that they have a commitment to the community, and our members can easily go and take advantage of their coop membership,” Nelson said.

The PCEC will continue to ensure that all residents in the Phillips community have the same accessibility to energy conservation information and programs.

For more information contact; Phillips Community Energy Cooperative, Carl Nelson, Green Institute, 612-278-7117, cnelson@greeninstitute.org