THE ENERGY FOUNDATION &
ACEEE JOINT PRESS RELEASE
NATIONAL STUDY SHOWS ENERGY
EFFICIENCY AND RENEWABLE ENERGY CAN PROVIDE FAST RELIEF FROM HIGH
NATURAL GAS PRICES
Policy Changes Can Save Consumers
$75 Billion Over the Next Five Years
For further information, contact: David Wooley at 707-843-0802 or
Anna Shipley at 202-429-8873
FOR IMMEDIATE RELEASE
September 24, 2003
Washington, D.C. -- New investments in energy efficiency
and renewable energy generation would lower natural gas prices rapidly
and help retain manufacturing jobs, a national study prepared by
the American Council for an Energy-Efficient Economy (ACEEE) shows.
The study, Impacts of Energy Efficiency and Renewable Energy
on Natural Gas Markets, was commissioned by the Energy Foundation
to determine whether increased use of efficiency and renewables
would reduce demand for and prices of natural gas. It parallels
the National Petroleum Council (NPC)'s latest report on natural
gas (to be released September 25), using the same methodology but
applying a recommended set of efficiency and renewables policies.
Bill Prindle, Deputy Director of ACEEE stated, "This study defines
a concrete path to reducing wholesale natural gas prices 10-20 percent
in the next 5 years through specific policy actions. We hope that
the NPC report will recommend a similar path. It won't be enough
to express general support for efficiency and renewables: the specific
policy details and funding levels make all the difference."
The ACEEE study identifies national policies that would help lower
natural gas prices, including: efficiency targets for utilities,
appliance efficiency standards, building energy codes, increased
federal deployment program funding, renewable energy portfolio standards,
and tax credits for efficient and renewable energy technologies.
"Taken on a national scale these actions would save Americans over
$75 billion on gas bills alone in the next five years," explained
David Wooley, Vice President of the Energy Foundation. "This translates
into an average household savings of $96 per year on natural gas
bills. Additional savings would also result from lower electricity
bills."
"Contrary to what many are saying, there is something we can do
about natural gas prices right now. Increased efficiency and renewable
energy can reduce natural gas prices quickly and affordably," explained
Dr. Neal Elliott, Industry Program Director at ACEEE and co-author
of the study. Most analyses of the gas situation look only at supply
solutions that will take five or more years to make an impact, whereas
the ACEEE study focuses on results in the critical next five years.
Reducing Demand for Electricity is Key to Saving Natural Gas
Energy efficiency and distributed renewable generation lower peak
demand on the electric transmission system and reduce the risk of
system failures. Increased use of these common-sense solutions makes
our electric supply more secure without increasing our dependence
on fossil fuel imports.
An increasing share of the electricity generated in the U.S.,
particularly in the Northeast, South, and on the West Coast, comes
from natural gas-fired power plants. The analysis shows that natural
gas expenditures by electric power generators would decrease by
$6.2 billion in 2004 and by as much as $10.4 billion by 2008 with
adoption of energy efficiency and renewable energy policies. This
reduction would likely reduce electricity rates as well.
Energy Efficiency Can Save U.S. Manufacturing Jobs
"Along with a robust and diverse supply of energy, increased efficiency
is clearly a critically important component of our response to the
natural gas crisis," said Peter Molinaro, Dow's Vice President of
Government Affairs. "Affordable and available natural gas is critical
to the health of American industry, our economy, and the environment.
Leaders in the public and private sector need to do everything they
can to spur investment in more efficient insulation, appliances,
motors, heating and cooling systems, lighting, and clean on-site
generation."
ACEEE's Elliott noted, "Energy efficiency and renewable energy
investments help employment in the manufacturing sector because
they reduce natural gas prices and help preserve U.S.-based jobs
that rely on natural gas as a manufacturing feedstock." Natural
gas is used as a fuel and raw material for a wide range of products
including fertilizer, plastics, chemicals, and steel.
State Policy Action Can Save Consumers Billions
In addition to providing a national overview, ACEEE's report takes
a close look at state and regional efforts. State-specific data
released for the first time today shows that state and regional
action can help solve local energy problems and save consumers money:
- In California,
Oregon and Washington, a package of efficiency and renewables
policies would reduce consumer gas bills in California by $5.6
billion between 2004 and 2008, and by about $1 billion in Oregon
and Washington combined in the same time period.
- Southwestern
and Rocky Mountain states would recognize large savings from energy
efficiency (EE) and renewable energy (RE) policies on a national
level. In Texas, consumers could save $10.2 billion from 2004
to 2008 from EE and RE strategies adopted at the national level.
Consumers in Arizona, New Mexico, Colorado, Utah and Nevada would
save almost $2.9 billion. Nevada has adopted an RPS and Colorado
is considering one; proposals are in play to expand renewables
and energy efficiency in New Mexico, Arizona and Utah.
- If implemented
in the New England and Mid-Atlantic states, EE and RE policies
would reduce wholesale natural gas prices in the region by 11.9%
in 2008, saving consumers in the region $7.2 billion in the 2004-2008
period. Annual residential natural gas bills would decline by
about $60 per customer. State officials in Maryland, Pennsylvania
and New Jersey are considering whether to adopt appliance efficiency
standards and new or expanded RPS policies.
- In the six
New England states, EE and RE policies would save customers over
$1.4 billion in the five year period studied. The savings help
validate the RPS recently adopted by the Connecticut legislature,
revised Massachusetts RPS regulations, and increased funding for
efficiency and renewables through the system benefit funds collected
through utility bill surcharges.
- In New York
the RPS proposed by Governor Pataki would reduce gas spent on
electricity generation by $384.7 million between 2005 and 2008.
- In the Midwest,
a national set of policies on renewables and energy efficiency
would reduce consumer costs by $21.6 billion in the period from
2004-2008. Annual residential natural gas bills would decline
by $90 to $140 per customer. Many Midwestern residential and commercial
customers rely on natural gas for heating and cooling. These results
support proposals for an RPS in Illinois and Kansas, Minnesota's
recent expansion of renewable energy requirements, and appliance
efficiency standards proposed in Illinois. The results strongly
suggest that states should adopt aggressive natural gas and electricity
efficiency programs to encourage and cost-share adoption of more
efficient gas and electric appliances and industrial gas uses.
A copy of the summary report can be downloaded at http://aceee.org/energy/EFnatgas-study.htm.
The ACEEE Web site also includes the following supplementary material:
a resource contact list, a summary of the study's results, and a
technical white paper on the methodology.
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About The Energy Foundation: The Energy Foundation is a partnership of major foundations interested in sustainable energy, including:. The John D. and Catherine T. MacArthur Foundation, The Pew Charitable Trusts, The Rockefeller Foundation the Joyce Mertz-Gilmore Foundation the David and Lucile Packard Foundation and the William and Flora Hewlett Foundation For more information about the Energy Foundation contact 1012 Torney Avenue #1, San Francisco, CA 94129 or visit http://ef.org/.
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
both economic prosperity and environmental protection. For information
about ACEEE and its programs and publications, contact ACEEE, 1001
Connecticut Avenue, N.W., Suite 801, Washington, DC 20036-5525 or
visit http://www.aceee.org.
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