Green Mountain Energy Company: Ahead of its Time
Renewables
Written by Ashley McGown   
Green Mountain Energy Company: Ahead of its Time
This clean energy provider was ahead of its time when it was founded, but it has generated a record amount of revenue in each of the last three years.
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The rise in public awareness of the impact of carbon dioxide emissions on the environment has caused a record number of individuals and companies to pursue environmentally friendly initiatives in recent years.

Green Mountain Energy Company: Ahead of its Time
Paul Thomas, president and CEO
The volatile economy has slowed some aspects of the movement, as people and businesses began to shy away from investments toward the middle of last year, but it has helped some segments of the trend gain momentum, since a reduction in pollution can often translate to decreased operational costs.

Green Mountain Energy Company is a Texas-based company that is benefiting greatly from the rising popularity of eco-friendly trends. As one of the country’s leading providers of clean electricity and carbon offset solutions, the organization is thriving.

In 2008, the company generated a record $400 million in annual revenue, and despite the recession, the company put up sales numbers during the first quarter of 2009 that surpassed those from the previous year.

“The year isn’t even close to being through, but I expect 2009 to be a record sales year for our company,” said Paul Thomas, president and CEO.

Although the organization’s ability to sell clean electricity hasn’t been affected by the economic downturn, Thomas said he and his team see evidence of the situation through their customers’ behavior, in the form of late payments.

As a result, the team at Green Mountain recently developed specialized payment plan options and an assortment of programs that help customers reduce their monthly bill. Through the company’s Web site, customers can access free energy audits, and individuals looking for a more thorough assessment can request an in-home audit, which is provided by one of Green Mountain’s partners for a reasonable fee.

“All of our customers work with us voluntarily—none of them purchase our electricity per a mandate,” Thomas said. “This means that every one of them is as dedicated to the environment as much as we are, and we’re working with them to further reduce their consumption and their bill, which is great for the environment as well.”

Sticking to its guns
Green Mountain was founded 12 years ago, and although the business is doing exceedingly well today, the years immediately following its inception were challenging for its team. Before the wave of sustainability awareness hit, few people were interested in the company’s ability to provide energy generated by renewable resources.

“We are the longest standing green electricity provider in the US. We were green long before it was cool to be green. Fortunately, we’ve witnessed a huge change in consumer attitudes and understanding concerning environmental issues,” said Thomas, who joined the company three years after operations began. “Today, more people are willing to allow sustainability factors to influence their purchasing decisions, and that’s been extremely beneficial to our growth,” he added.

Last year, the team at Green Mountain saw its efforts rewarded in the form of a surprising statistic. With headquarters in Austin and offices in Dallas and Houston, the majority of the work performed by the team at Green Mountain takes place in Texas, and according to Thomas, 5% of the total amount of energy consumed in the state last year was generated by wind power. This number set a new record, and it’s significantly higher than the national average, which he noted as just over 1%.

The team at Green Mountain is proud to have helped influence this change, and to set a proper example for its clients and potential customers, the organization offsets its entire carbon footprint, which includes its day-to-day operations and components such as employee travel.

Additionally, the company developed a commuter program to encourage its employees to carpool as often as possible, and the building that houses its headquarters is certified by LEED. According to Thomas, the building was just the second commercial space in Texas to receive the certification when it did so in 2005.

A wider reach
Although the majority of Green Mountain’s efforts are focused in Texas, the organization has established one branch office outside the state, in Portland, Ore. In conjunction with Portland General Electric, Thomas and his team operate a residential green marketing program in the area.

This summer, the team’s reach will expand further when it launches a residential and commercial business in New York City. The organization already partners with a handful of utilities in upstate New York and New Jersey, but the new office will allow it to grow its business in New York.

The project is currently in the final stages of development, and the soft launch is expected to take place this summer. Thomas said he is excited at the prospect of being able to offer clean electricity to customers in different states. “The biggest challenge we face today is the same one we faced 12 years ago, and that is making sure potential customers understand our basic value proposition,” he said.

In 2009, the team at Green Mountain plans to continue to focus on the initiatives that have made it successful thus far, which includes an emphasis on marketing and outward sales.

“Most people aren’t aware that the renewable energy we offer is no more expensive than the energy generated from traditional sources,” Thomas said. “People are constantly bombarded with messages today, and our biggest challenge is to try to catch 60 seconds of an individual’s time and help him or her understand what we’re offering. As soon as we’re able to do that, it’s a sale.”
 
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