Posted by Ed on June 25, 2007, 7:15 pm Hoping to make Massachusetts a national showcase for energy As the economy has grown and as many homeowners have added But Patrick contends that the state can conserve at least that much Patrick's policy will include legislation to require that utilities Also, the Department of Public Utilities this week is formally Patrick wants to allow utilities, as they promote conservation, to Customers would still save money. Their total delivery charges would "All we're trying to do is fully unleash energy efficiency, so it The plan could create 3,500 jobs for people selling energy- Patrick, in a statement e-mailed to the Globe, said: "Reducing our House Speaker Salvatore F. DiMasi, who has his own energy bill, said Senate President Therese Murray is also supporting Patrick's Most states are increasing spending on conservation, and California, But Chris Cashman, spokesman for the National Governors Association, The fact that Massachusetts is losing population, though, makes Frank Gorke, director of the advocacy group Environment NStar, which serves 1 million electric customers in Boston and 80 National Grid senior vice president Robert McLaren said his company But some in the electric industry, including the the New England "I don't think we're going to be able to conserve our way out of "There's nothing wrong with setting an ideal, as long as you Rio said that his group will closely scrutinize how utilities are Electricity is billed by the kilowatt-hour, the electricity needed Massachusetts utilities now collect about $125 million annually to Between 2003 and 2005, the average cost of measures funded through Meanwhile, the average cost of producing electricity jumped 61 "The big picture . . . tells us today we should be able to triple or Peter J. Howe can be reached at howe@globe.com.
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Patrick plans conservation to meet rising energy needs
Aim is to avoid building new power plants
By Peter J. Howe, Globe Staff | June 25, 2007
conservation, Governor Deval Patrick will announce plans today to
offset the state's annual increases in electricity demand with
equivalent energy-efficiency and conservation measures by 2010.
electronics and air-conditioning, the state's total electric usage
has been increasing at about 1 percent annually, the equivalent of
adding about 170,000 new average-sized houses every year, US Energy
Department data show.
more electricity every year and keep overall demand frozen
indefinitely, for much less than the cost of building new power
plants.
such as NStar and National Grid pay for all energy-conservation
efforts that, in cost per unit of power saved, are less expensive
than buying that much power from energy suppliers. That could
include subsidizing the cost of customers installing lower-
consumption lighting such as fluorescent bulbs or replacing
appliances and industrial gear.
launching proceedings to implement a major policy shift for
utilities that separates, or decouples, how much profit they make
from the amount of energy their customers buy. As a rule, utilities
lose money by getting customers to conserve, because their revenues
are tied directly to how many units of energy they deliver.
be able to raise electricity delivery rates to offset lost revenue.
He hopes that by ending the financial disincentive he can encourage
utilities to promote conservation.
hold steady, and they would save on the cost-of- energy part of
their bill as they use less electricity.
can compete with generation," said Ian A. Bowles, the state's
secretary of energy and environmental affairs.
efficiency products and services, Bowles said.
usage through energy efficiency will save money, create jobs, and
boost our clean-energy economy."
he backs Patrick's plan. "The governor and I are committed to bold
action on energy reform, and setting this ambitious goal for energy
efficiency shows we are willing to do the hard work necessary to
make that happen," DiMasi said.
conservation goal.
Connecticut, Rhode Island, and others are implementing versions of
rate decoupling and laws that require conservation before building
new generating capacity.
said he knew of no other state that has committed to a policy of
zero growth in electric demand through conservation.
reducing electric demand considerably easier than elsewhere.
Massachusetts, said: "What we have lacked is leadership on energy
policy in Massachusetts in recent years. We've been rudderless. This
is a big change and very exciting."
Eastern Massachusetts communities, is "eager to participate in this
discussion," said spokeswoman Caroline Allen. "The 2010 goal is an
admirable and aggressive one. We believe that reducing energy
consumption while still growing the economy is vital."
is also enthusiastic and considers the no-increased- demand goal to
be attainable.
Power Generators Association, doubt projections that the state can
increase conservation indefinitely to hold electric demand flat.
Such forecasts have been made by goups like Northeast Energy
Efficiency Partnerships of Lexington.
growth, but that's certainly a good ideal to aim for," said Robert
J. Rio, vice president of environmental programs for Associated
Industries of Massachusetts, the state's biggest business lobby with
more than 7,000 members.
recognize there may be a time you need to build" power plants, he
said.
compensated for promoting conservation, adding that utility delivery
charges are overdue for thorough review by state
regulators. "Verifiable, real energy conservation that saves
everyone money is a good thing, but it has to be real, and it has to
be verifiable," he said.
to keep 10 100-watt light bulbs burning for an hour. Typical
residences and small businesses use 500 kilowatt-hours a month.
promote conservation, through a charge of one-quarter cent per
kilowatt-hour. Roughly half goes to subsidizing more efficient
lighting, a quarter to better air conditioning systems, and the rest
on other measures.
utility bills to save a kilowatt- hour of energy fell 15 percent, to
3.2 cents, according to a recent analysis by the state Division of
Energy Resources.
percent, to 8.9 cents, or nearly triple the cost of conservation.
quadruple the amount of energy savings and have it all be cheaper
than generation," Bowles said. " We need to get rid of these
perverse disincentives that keep it from happening."
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