In the modern age, when we need electricity we simply flip a switch. We seldom think about how that energy is created, where it comes from or how it gets to us. Yet the production of electricity has greater environmental impacts than virtually any other single human activity.

We currently are in the midst of an energy revolution. However, other than utility companies, policy makers and environmentalists, relatively few people know that fundamental change is occurring in the way in which electrical energy is generated and delivered for our use. The results of this revolution will have far-reaching economic, environmental and social consequences.

The Delivery of Power and the Power of Delivery
Today, it's hard to imagine any system for generating and transmitting electricity different from the one upon which we depend. But, in terms of the length of its existence, that system is a mere youngster. In fact, our reliance on electricity is barely 100 years old. Initially, electrical power was generated for specific users or particular applications. Companies, streetcar lines, hotels and even rich families simply built their own generating facilities. As power systems evolved, several other factors helped make the situation even more complicated:

• Differing frequencies for different needs such as various types of lights and motors.

• Competing power providers.

The result was that in many locations, there were hundreds of power lines, each carrying a different current, at a different frequency for different users. Between 1882 and 1905 the City of Chicago granted 29 electric power franchises. Only three were citywide. Just as there were many factors that led to the confusion, so too were there many reasons for eventual consolidation.

On September 4, 1882, the Pearl Street station in New York City inaugurated the beginning of the electric utility industry serving 85 customers with 400 lamps. Slowly at first, then with increasing speed, electricity became the dominant source of energy in America and throughout the industrial world. Its evolution was marked by the construction of huge hydroelectric dams, coal-fired power plants, and transmission grids owned by private companies, the government and, ultimately, public utilities as regulated monopolies.

The New Order or Deja` Vu?
Little more than a century after the era of central power plants was launched the cycle seems to have swung full circle. Suddenly, people are talking about "customer choice" and "distributed generation." Despite the revolutionary nature of this change, the public seems to greet it with collective silence. Perhaps in a time that has seen the deregulation of the telephone, airline and natural gas industries, no one was surprised that the electrical industry would soon follow. Or maybe they are simply boggled about the prospects of making more decisions. Most likely, consumers are unaware of the issues and their role in determining the outcome.

The reorganization of the electrical power industry provides huge opportunities for consumers to support meaningful change in a way that has positive consequences for people, the economy and the environment.

Greenbacks for Green Power
Consumers in many markets now have an opportunity to choose how their electrical energy is generated. This change is being driven by several factors including:

Green power resources include solar, wind, geothermal, biomass and small-scale hydro (large hydro is generally excluded due to its land-use and fisheries impacts). Purchasing energy from these resources is both an economic and environmental investment.

Decentralizing Power Production: What Was Old Is New Again
The most radical change in how we obtain and generate electricity is called "distributed generation." The concept in its purest form calls for multiple sources of generation tied to the shared transmission grid. These sources can be wind turbines, solar panels or fuel cells in factories, homes and other locations.

This isn't utopian fiction. Today, many utilities are required by state law to credit their customers for energy they provide to the grid through the use of solar panels or other renewable energy technologies. This process is known as "net metering." Some utilities (such as the Sacramento Municipal Utility District) and businesses are investing in distributed generation as an alternative to costly and polluting centralized power plants. Distributed generation is quickly becoming a cost-effective, environmentally sound and reliable alternative to current strategies.

The details may not be clear but one thing is certain. As our demand for energy continues to grow, the costs to society and the environment will increase. The choices energy consumers make will help ensure that we can pay the bills when they come due.

Paul Aldretti works with government agencies, nonprofit organizations and leading companies in the development of integrated, consensus-based solutions to complex environmental issues.