ACEEE NEWS RELEASE

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ENERGY-SAVING MEASURES STILL AWAITING STATE APPROVAL

August 7, 2008

Washington, D.C.—Energy conservation and efficiency programs that could save the state’s consumers hundreds of millions of dollars in energy costs are awaiting approval by the Maryland Public Service Commission (PSC). A group of 30 business, consumer, and environmental organizations is urging the PSC to act.
 
On Aug. 5, the groups wrote to the PSC urging the commission to act on a range of programs filed by the state’s utilities to help consumers save energy and reduce their household and commercial energy costs. The letter was signed by the American Council for an Energy-Efficient Economy (ACEEE), the Maryland Consumer Rights Coalition, and a host of state organizations, including the Chesapeake Bay Foundation.

“The PSC may be on the cusp of squandering our best chance to lower customers’ electric bills,” said Johanna Neumann, State Director of the Maryland Public Interest Research Group in Baltimore. “The PSC should direct Maryland utilities to implement expanded energy efficiency programs as soon as possible, to start delivering savings to consumers before the end of this year.”

Public utility companies in Maryland first submitted proposals to the commission last year that would offer help and incentives to homeowners and businesses to improve energy efficiency. But as of yet, the commission has taken no action on most of these pending proposals.

"We're not suggesting that the Public Service Commission give utilities a blank check to spend ratepayers' money on whatever," said Steve Hannan, Executive Director of the Consumer Rights Coalition. "But targeted incentive programs to help consumers save energy will benefit all Maryland consumers. Electricity and natural gas prices are still headed higher, so the sooner we get started, the better."

Governor Martin O’Malley and the Maryland legislature earlier this year set a goal of reducing electricity consumption in Maryland by 15 percent by 2015 through conservation measures. The EmPower Maryland initiative directed utilities to submit additional proposals to the commission by September 1 of this year that would provide most of those reductions, and required the commission to review and approve the specific programs proposed by the utilities.

“Although many consumers choose to install energy-efficient products and equipment every day, large and persistent barriers continue to limit wider adoption of efficiency measures,” the ACEEE letter states. “Customer incentive programs are needed to overcome these barriers. Most electricity customers lack the time, capital, or expertise to fully recognize and exploit energy efficiency opportunities.”

The groups urge careful review of the energy-saving proposals to determine their potential costs, but also note that many similar proposals already have proven successful in other states. Also, a recent study has shown that spending for efficiency incentive programs is likely to yield four times the savings as other measures – such as changing building codes or household appliance energy standards.

“We urge that incentive programs for new construction and major equipment be up and running before the end of 2008,” the letter read. “The EmPower Maryland goals are ambitious, and every month that implementation is delayed will make the 2015 goals harder to achieve. Delay itself has a cost.”

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About ACEEE: The American Council for an Energy-Efficient Economy is an independent, nonprofit organization dedicated to advancing energy efficiency as a means of promoting economic prosperity, energy security,  and environmental protection. For information about ACEEE and its programs, publications, and conferences, contact ACEEE, 529 14th Street N.W., Suite 600, Washington, D.C. 20045 or visit www.aceee.org.