Why Energy Efficiency in West Virginia?
- Appalachian
Power's residential rates have increased more than 50% since 2006. Mon Power and Potomac Edison residential
rates have increased about 30% in the last three years. Taking advantage of the opportunities
from energy efficiency will mitigate the impact of increasing electric
rates on residents.
- AEP
(the parent company of Appalachian Power) and FirstEnergy (the parent of Mon
Power and Potomac Edison) are already offering energy efficiency programs
in other states where they operate, including Ohio, Pennsylvania and
Maryland. There is no reason the
same opportunities shouldn't be available to West Virginians.
- Our
electricity system is facing serious challenges from potential retirements
of old and inefficient coal plants in next several years. Saving energy through efficiency will be
cheaper for customers than footing the bill for expensive new gas power
plants.
- West
Virginia's residential electricity consumption per person is 40% higher
than the national average, implying significant potential for West
Virginians to save money through improving residential energy efficiency.
- Energy
efficiency is cheaper than building new conventional or renewable energy
power plants.
- Investing
in weatherization and other efficiency measures will create new jobs and
an industry that cannot be outsourced.
An Energy Efficiency Resource Standard would require our
utilities to meet targets for energy efficiency through 2025. In 2011, we proposed a bill to establish an
Energy Efficiency Resource Standard that would:
- Require
reductions in electricity consumption by 15% of 2010 sales by 2025 and
peak electricity demand by 15% of 2010 peak demand by 2025. Specifically the bill requires 2%
reduction by 2015, 5% by 2018, 10% by 2022, and 15% by 2025.
- Require
utilities to develop plans every three years and submit them to the Public
Service Commission (PSC), explaining how they plan to meet these targets
through cost-effective energy efficiency and demand response
programs. Utilities must provide
annual updates to the PSC on their progress towards achieving the
targets.
- Require
the PSC to report annually to the legislature on the status of energy efficiency
programs, including the impact of programs and services directed to
low-income communities.
- Require
the PSC to study the feasibility of setting energy savings targets for
natural gas utilities.
- Require
the PSC to evaluate whether “smart meter” and “smart grid” technology are
cost-effective in reducing electricity consumption.
- Allow
the PSC to approve financial incentives for utilities to recover revenues
that would otherwise be lost through energy efficiency.
- Allow
the PSC to establish a special license fee of up to $600,000 to carry out
the requirements of this bill.
- Allow
large industrial energy consumers to self-direct 80% of the money that
they would otherwise pay to utilities for energy efficiency programs
towards their own energy efficiency programs
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