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 | Apr-21-2008Energy industry says more construction needed(topic overview) CONTENTS:
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A few sticking points remain in negotiations for a comprehensive energy bill, but lawmakers have agreed to require electric utilities to meet annual goals for cutting energy usage. Consumers initially will see very small increases in their bills, experts said, but they will be able to buy more efficient light bulbs and appliances at a heavy discount that will save them money down the road. Current policy encourages utilities to sell as much electricity as they can, driving the need to build more costly power plants. Lawmakers now want to provide perks to utilities and customers to cut usage _ and penalize utilities if they don't meet those goals. [1] For every $1 invested in more efficient lighting and appliances, $2 to $3 is saved down the road by avoiding or at least delaying the need to build new multibillion-dollar power plants. "It's the cheapest power available," says Rep. Kathy Angerer, a Dundee Democrat who's sponsoring a bill that would put energy efficiency programs back in place.[2]
Environmentalists argue more energy efficiency could greatly reduce the need for a huge new wave of power plants and transmission lines. In two studies out Monday, the power industry gives its terse response: Don't count on it.[3]
The roughly 15 states that have energy efficiency resource standards have generally met or exceeded targets of differing levels of aggressiveness. Ohio will attempt to cut 0.3 percent of its total usage in 2009, and gradually to reach a total drop of more than 20 percent by 2025. If utilities fail to meet the annual requirements, they will pay a penalty that will go into a fund to invest in advanced energy. The House and Senate still need to work out differences in the details between their plans. Reaching goals for less energy usage won't be free for consumers _ but the costs will be cheaper than building more power sources, whether they be old-style coal plants or new-age wind farms, experts said.[1] Energy efficiency measures cost about $400 per kilowatt _ the most common single measurement of power _ while building a new coal plant costs roughly $3,000 per kilowatt and a new nuclear plant costs $4,000 per kilowatt, according to figures compiled by the Consumers' Counsel.[1]
There's one, however, that asks you to pay a little more energy to save the planet. The New Jersey Board of Public Utilities' CleanPower Choice program offers residents the opportunity to pay more to their electricity company in order to pay for energy that comes in part from renewable resources such as wind- and solar-generated power plants.[4] The New Jersey Clean Energy program -- a project of the Board of Public Utilities -- is currently offering rebates of up to $75 to consumers who purchase extremely efficient clothes washers. The program only applies to washers that are far more efficient than even those given an Energy Star -- washers that can wash 2.2 cubic feet of laundry with every kilowatt of energy, while at the same time using less than 4.5 gallons of water to do so. One washer that meets those strict regulations is the LG 7-Cycle Extra-Large Capacity Washer, model number WM2233HD, a front-loading washer available at appliance stores, such as Best Buy, for about $1,000.[4] Fax machines, Christmas lights, dishwashers, geothermal heat pumps -- almost every imaginable home product that consumes energy in some fashion is evaluated through the program and the standards for a product to win the Energy Star rating are constantly being raised. For some products, the rating refers to more than just energy use -- dishwashers and clothes washers, for example, are also rated according to how much water they consume. Products that meet the Energy Star standard are usually labeled as such at a store or on a store website. (But not always -- our completely unscientific survey of a handful of big-box appliance stores and their websites indicates some products that actually exceed Energy Star standards do not bear the Energy Star label.)[4]
A joint project of the Environmental Protection Agency and the U.S. Department of Energy, the program, begun in 1992, awards an Energy Star to appliances and products that meet super-strict efficiency guidelines.[4]
A more sure-fire way to determine if a product adheres to the Energy Star standards is to visit energystar.gov -- not only does it provide lists of every eligible product, updated each time a new product is released by a participating manufacturer, it also offers guidance on things like how many BTU's you need in an air conditioner to cool a room of a particular size (approximately 1000 BTU's for every 100 square feet) or where to place the fridge in your kitchen to make it most efficient (far away from the stove).[4] If that sounds too costly for you, take heart -- another New Jersey Clean Energy program, Comfort Partners, offers evaluation of home energy use and new, more energy-efficient products -- from refrigerators to insulation -- to low-income families for free.[4] The New Jersey Clean Energy program offers a wide array of services designed to make homes more energy-efficient.[4]

Money will also go toward creating collaborative programs to make homes more energy efficient. Programs to provide home energy audits, improve their ability to trap warm and cool air, and give rebates for the purchase of efficient home appliances will be created. The subsidy provided by the surcharge will enable residential consumers to pay just a portion of what it would otherwise cost if they made those improvements on their own. [1] Power demand is expected to surge 30% by 2030 as the U.S. population grows and more consumers buy energy-thirsty flat-screen TVs and other electronics, the Energy Information Administration says. That projection accounts for current utility programs that give consumers rebates for purchases of efficient appliances. It also figures in a recently passed federal law that toughens appliance standards and phases out the incandescent light bulb by 2020.[3]
Although details would have to be sorted out by utilities and state regulators, the plans generally would mean utility customers could get rebates for buying more efficient light bulbs and household appliances in the future. They'd likely have to pay more -- 50 cents to $1 -- on their monthly bills so the rebate program could be put in place. Utilities in turn would have to reduce the amount of electricity they sell starting in 2009.[2]
The new law would force all utilities to participate, Migden-Ostrander said. Part of the money raised from the bill surcharge will help utilities recoup their costs for making energy-efficiency improvements. Dave Rinebolt, executive director of Ohio Partners for Affordable Energy, has been advocating for efficiency improvements to target customers who are having trouble paying their bills. If their electricity bills drop, they are more likely to make those payments, said Rinebolt, whose organization advocates for low electricity prices for moderate and low-income Ohioans.[1] Energy efficiency is vastly cheaper than renewable sources. Electricity customers would see an increase in their bills measured in cents, and in some cases, a dollar or so. Some of the money collected will go toward utility infrastructure improvements such as decreasing the amount of electricity lost on power lines.[1]
A report a year later by Hawaii's most dominant utility showed that energy efficiency savings amounted to 4 percent of electricity sales.[1]
Details of the energy efficiency programs will be worked out by the Public Utilities Commission of Ohio.[1] Ohio has the luxury of looking at what has worked best in other states that have already had energy efficiency mandates. "Look at the very positive experiences in a number of states that are doing this," said Steven Nadel, executive director for the American Council for an Energy Efficient Economy, which advocates the passage of energy efficiency standards.[1] Most state and federal energy efficiency programs are designed to save you money, at least in the long run.[4]
Nadel, by contrast, says the decrease in power demand could be much higher. He cites plans by Maryland for ambitious efficiency programs designed to freeze demand at today's levels by 2030, virtually eliminating the need to build new plants. Other states could follow suit, he says. Munn says utilities can't count on bold initiatives that may not develop. "We could find ourselves without" adequate supply, she says.[3] "You can either build new power plants to build a growing load or you can try to diminish that growing load," said Ohio Consumers' Counsel Janine Migden-Ostrander.[1] The monthly surcharge is a great bargain considering residents could pay an extra $3 to $4 a month for a new power plant, says Martin Kushler, a former Michigan Public Service Commission staffer who's now with the nonprofit American Council for an Energy-Efficient Economy based in Washington, D.C.[2]
The projects, aimed at meeting new demand and replacing aging plants, would cost $457 billion.[3]

Amid the debate about the true costs of wind, coal and nuclear power, state lawmakers have agreed on one fact: The cheapest electricity is the energy that Ohioans never use. [1] LANSING, Mich. (AP) - As state lawmakers wrestle with how much more electricity Michigan will need in the future, many energy experts are saying: use less.[2]
Sweeping energy legislation approved last week by the state House and now before the Senate includes a requirement that utilities restart efficiency programs canceled a decade ago.[2] By far the easiest way to make your home energy-efficient is to purchase electronics that are approved by the federal Energy Star program.[4] If you can't get to a computer, most information is also available via the Energy Star hotline, (888) 782-7937. Some stores have their own environment-friendly labeling system -- Home Depot stores, for example, puts an Eco-Options label on items that are earth-friendly in some way, either through energy-efficiency, sustainable forestry or clean air manufacturing.[4]

Utilities likely would use the surcharge fees to cut bulk deals with stores selling energy-efficient products, which generally are more expensive. Stores could give customers instant rebates -- paid for by the utilities -- if they buy high-efficiency clothes washers, furnaces and compact fluorescent light bulbs. [2] Sometimes, if you invest in energy-efficient products, you can get some of your money back.[4]

One that any homeowner can take advantage of is the "Home Performance" evaluation, which -- for $250 -- sends a technician to your house to evaluate the efficiency of your heating and cooling equipment, insulation, windows, doors, appliances and lighting. At the end of the process, you get an evaluation of how energy-efficient your home is, plus a list of improvements you could make, and an estimate of how much those changes might save you over time. [4] The program even offers low-interest financing for some of the suggested renovations, and may reimburse you the $250 depending on how many improvements to your home you make.[4]
The board estimates that the extra charge on an average home-owner's bill will amount to $4 to $11 each month, depending on which kind of renewable power source you choose to support. (You can cancel your participation in the program at any time.)[4]
"Energy efficiency is a least-cost option." A spokeswoman for Akron-based FirstEnergy Corp. declined to comment until the bill was in its final form.[1] Hawaii passed a combined requirement for renewable energy production and energy efficiency in 2004.[1]
Additional utility efficiency efforts could cut power demand in 2030 by 7% to 11% compared with what would be achieved by current measures, says a second study by Brattle and the Electric Power Research Institute, which is partly funded by utilities.[3] Even with widespread purchases of energy-saving appliances and better-insulated homes, the USA will still need to build at least 151 gigawatts of new generation enough to power 75 million homes by 2030, says one study by The Brattle Group for Edison Electric Institute (EEI), the industry's trade group.[3]
SOURCES
1. Ohio.com - AP 2. Michigan can save down the line with energy efficiency now - NewsFlash - mlive.com 3. Energy industry says more construction needed - USATODAY.com 4. Save money, save the planet - Home Stories - NJ.com

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