Conserving energy is cheaper and easier than building new power plants
to meet growing demand. With this in mind, a bill in the Legislature
would increase funding for Efficiency Maine, the state's energy
conservation program, and encourage more efficient use of electricity
through building codes, furnace and boiler standards and special
training for school facility managers. The bill, LD 1931, would save
electricity customers money and should be passed.
Conserving
electricity would save all electricity customers money, not just those
who install more efficient machinery, light bulbs and appliances. The
Public Utilities Commission solicits bids from electricity generators
to meet Maine's power needs by filling the "bid stack" with the
lowest-cost electricity. It adds in higher bids until Maine's demand is
met.
The
wrinkle is that all bidders are paid the price of the highest bidder
needed to complete the bid stack. If the highest bidders, usually those
added to the stack to meet peak demand, are kept out because less
electricity is needed, the overall price paid will be lower.
LD
1931 would double funding for Efficiency Maine by increasing the tiny
portion of utility rates that goes toward the program. Customers
currently paid 0.15 cents per kilowatt-hour to support Efficiency
Maine. Under the bill this would double to 0.30 cents per kilowatt-hour
over three years. This would result in an increase of about $10 a year
for the average residential customer.
However,
a study by Synapse Energy Economics, a Massachusetts consulting firm,
found that doubling the funding for Efficiency Maine would reduce
overall electricity costs by at least $45 million and as much as $180
million a year. So, electric bills could actually decrease by $20 a
year.
Efficiency
Maine, which is run by the PUC, offers information and cash incentives
to help businesses reduce their energy usage. Hundreds of businesses
have participated in the program, saving more than $2 for every $1
invested in efficiency improvements.
Jasper
Wyman & Son, a Washington County wild blueberry processor,
installed a more efficient air compressor in its plant. The new machine
used half as much electricity and has saved the company nearly $14,000
worth of electricity since it was installed in December 2004. Katahdin
Cedar Log Homes in Oakfield received a grant to install more efficient
lighting in its manufacturing facility. This saved the company money on
its electricity bills while improving visibility.
The
program also helps residential customers through rebates for efficient
light bulbs and appliance and weatherization programs for low-income
households.
LD
1931, sponsored by Sen. Philip Bartlett of Gorham, would also encourage
towns to adopt building codes that require energy efficiency in new
structures. It would also give the PUC the authority to set efficiency
standards
for
furnaces and boilers. The bill would also encourage schools to train
their facilities managers in energy saving techniques with a goal of
reducing school electricity use by 15 percent a year. Finally, the bill
asks the PUC to look for a way to separate electricity deliver costs
from usage.
Because
transmission and distribution costs are pegged to the amount of
electricity a consumer uses, there is no incentive for transmission and
distribution companies, such as Bangor Hydro-Electric Co. and Central
Maine Power Co., to promote energy conservation.
LD 1931 takes many small steps to promote electricity conservation in Maine. Lawmakers should support it.
