The sustainability of preference power allocations: An exploration of the Niagara Preference Power Program through the lens of the three E's

Preference power allocations are allowances of electricity produced at government-owned power-generating facilities that are designated for sale to specific users at below-market rates. The Niagara Preference Power Program (NPPP) provides power to 51 municipally and/or cooperatively owned rural electric providers in the New York State. In this research, we use the analytical framework of the three E's of sustainability-ecology, economy, and social equity-to explore how the NPPP influences municipal efforts to conserve energy, integrate energy planning into community development, and advance social equity among community members. Our survey of municipal officials in NPPP communities and follow-up semi-structured interviews indicate that the NPPP offers significant benefits to participating communities. Benefits include low electric rates and high levels of energy literacy among municipal leaders. Simultaneously, preference power may complicate economic development and energy conservation initiatives. Several communities involved in this study have developed techniques for overcoming these obstacles, such as creative rate structures and approaches to the promotion and implementation of energy conservation efforts. Consequently, these select municipalities challenge deeply held assumptions about the motivations that underlie energy conservation efforts and effective communication about the value of conservation behaviors in situations with weak, indirect, and invisible financial incentives.