A
few things have become abundantly clear in light of the August
14 blackout that crippled the Northeast. The first is that the
nation's electrical transmission and distribution system is
badly in need of an upgrade.
The second is that that upgrade won’t happen anytime soon.
Congress is at odds over whether to include system
reliability issues in an already-controversial and long
delayed national energy bill. And however the issue is
addressed, there is little political consensus on the means to
a solution, especially when Energy Secretary Spencer Abraham
proclaims that the costs of system upgrades, estimated at
roughly $56 billion, will be borne principally by ratepayers.
Add opposition to the Federal Energy Regulatory
Commission’s proposals to create regional energy authorities
to regulate energy transmission across state lines and oversee
system upgrades, as well the local opposition likely to arise
when and if sites are designated for the construction of
massive new high-voltage transmission lines, and it becomes
clear that grid improvements are a long way from reality.
There are, however, solutions that can meet short-term
demand response needs while also accruing long-term energy
savings, having both immediate and lasting impacts on our
nation’s energy system. Energy efficiency measures provide the
quickest, cleanest and cheapest way to help ensure that the
regional and interconnected electric grids are not again
overwhelmed.
For the past 15 years New England ratepayer-funded energy
efficiency programs have yielded cost-effective peak demand
reductions and energy savings that nearly equal the capacity
and annual output of the 1,100 megawatt Seabrook, N.H. nuclear
power plant. In doing so, these programs have saved consumers
over $250 million in avoided energy bills, and helped to
relieve the strain on a regional electric grid that includes
the most congested transmission area in the country, Southwest
Connecticut. A broader commitment to such energy efficiency
programs and policies can extend these benefits and provide
badly needed transmission and distribution capacity until such
time as the daunting task of upgrading our national T&D
system can be realized.
Ratepayer funded energy efficiency programs, administered
in a number of different formats throughout the Northeast,
help introduce to consumers energy efficient products – like
efficient lighting, appliances or equipment – as well as best
practices – such as resource efficient commercial building
operations and maintenance. During the most recent budget
difficulties, however, these funds have come under attack as a
quick-fix budget solution. To take these ratepayer funds and
use them for anything other than their intended energy
purposes is wrong under any circumstances, but potentially
calamitous given the fragility of our energy grid. If
anything, states need to increase their commitments to energy
efficiency programs to expand on the demand reductions they
bring.
To complement these programs, both federal and state
policymakers also need to act on energy efficiency product
standards. Legislation being considered in several Northeast
states, including Maryland, Pennsylvania, New Jersey, New
York, Connecticut, Rhode Island, Massachusetts, Maine and New
Hampshire, would enact standards for 10 common residential or
commercial products, ranging from ceiling fans to traffic
signals. By implementing these standards, the Northeast would
realize an estimated 9,335 gigawatt hours in energy savings by
2010, which is the equivalent to the energy required to power
over 1.5 million households. Those same standards would also
reduce peak energy demand by over 2,100 megawatts by 2010,
which is the equivalent of seven power plants.
The federal government also needs to recommit to efficiency
standards on two fronts. First, legislation in the current
energy bill would for the first time in over a decade enact a
new set of efficiency standards for a range of products. These
provisions need to be considered as vital pieces to the
complex set of solutions to our transmission and distribution
capacity constraints.
Second, the Department of Energy needs to act on the
standards mandates they have been given. In 1992, the DOE
issued an advanced notice of a proposed rulemaking on a
standard for residential furnaces and boilers, but still
hasn’t set that standard over a decade later. The hard work of
gaining legislative approval for these standards has been
done; it’s now incumbent on the administration to order DOE to
act on those mandates.
Finally, regional power system planners and state
regulatory commissions should explicitly include in power
system planning and development the potential of energy
efficiency to meet future system needs and relieve grid
constraints. The Northwest Power Planning Council – the only
regional planning power planning body in the country that
considers the potential of energy efficiency – found that over
the past 20 years energy efficiency programs and polices met
25 percent of system growth in the Pacific Northwest, and can
provide at least 12 percent of future projected growth in that
region for the next 20 years.
The problems with our electricity system didn’t develop
overnight, and they won’t be solved overnight. But until they
are, energy efficiency can and should play a vital role in
addressing both the short- and long-term issues of system
reliability. To ignore this readily available solution is to
risk the lights going out … again.
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