Some utilities are rushing to raise fixed charges. That would be bad for the economy and your utility bill
Slow growth in electricity demand (or, in some places, flat or declining sales) and growing numbers of customer photovoltaic systems are creating concern among utilities about their ability to adequately recover the costs associated with producing electricity. In response, there has been a disturbing trend around the country of utilities proposing to simply raise monthly “fixed charges,” or the charges we pay to the utility just for being a customer.
Every few years, a new paper comes out about the rebound effect and the issue receives some short-term attention. (When a consumer or business buys an efficient car or air conditioner, they may use their energy-efficient equipment a little more often or may spend some of their energy bill savings on things that use energy—these are examples of rebound effects.) ACEEE wrote a paper on the rebound effect in 2012, concluding that both direct and indirect rebound effects exist, but they tend to be modest.
Baseball’s All-Star Game assembles teams of the best athletes to face off against each other and play at an extraordinary level, beyond what is possible during the regular season. Natural gas and electric utilities design and build dual-fuel energy efficiency programs that score added energy savings and cut costs beyond what they could have achieved on their own. While the All-Star Game happens just once each year, combined gas and electric energy efficiency programs are performing at levels beyond the ordinary on an ongoing basis.
Energy Efficiency Costs Utilities 2 to 3 Times Less Than Traditional Power Sources; Average of 2.8 Cents per Kilowatt Hour
Washington, D.C.—According to a new report released today by ACEEE, energy efficiency is the cheapest method of providing Americans with electricity. Energy efficiency programs aimed at reducing energy waste cost utilities only about three cents per kilowatt hour, while generating the same amount of electricity from sources such as fossil fuels can cost two to three times more.
U.S. electricity sales peaked in 2007 and have been declining modestly since then. Sales in 2012 were 1.9% lower than 2007 sales, and sales in the first ten months of 2013 are below the same period in 2012. While the economic recession is an obvious explanation for the decline in sales in 2008 and 2009, it is much less clear why sales have continued to decline since then, even as the economy began to recover.
The Ohio Manufacturers’ Association (OMA) today released Ohio’s Energy Efficiency Resource Standard: Impacts on the Ohio Wholesale Electricity Market and Benefits to the State, a report that the OMA commissioned ACEEE to prepare.
Last week, states from the Dakotas to New England were surprised by a late winter storm. Energy efficiency in the states has had its own share of surprise squalls recently. As we now sit on the cusp of spring, it seems an appropriate opportunity to offer my own outlook on states’ pursuit of energy efficiency in 2013.
New Report Shows How Energy-Efficient Manufactured Homes Can Save Consumers Billions
Utilities across the Country Increasingly Turning to Energy Efficiency as the Lowest-Cost Energy Resource