Date: 04/12/2006
Final
Home Energy Efficiency
HOUSE COMMITTEE ON -- SELECT -- STRATEGIC RENEWABLE ENERGY
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03:22 PM -- Home Energy Efficiency
Howard Geller, Southwest Energy Efficiency Project, explained that his organization promotes utility energy efficiency programs in Colorado, Arizona, Nevada, New Mexico, Utah, and Wyoming. (Attachment D). Utilities can encourage energy efficiency by providing incentives to install efficient appliances, heating and cooling systems, and compact fluorescent lighting. Utility energy efficiency programs offer the greatest opportunity to save consumers money by lowering their electricity and natural gas bills. Reducing demand by increasing efficiency saves money by delaying the need to build new power plants. Energy efficiency also helps reduce pollutant emission and water consumption.
Mr. Geller expressed concern about public policies that discriminate against energy efficiency measures. For example, the Public Utility Commission (PUC) prohibits utilities from raising their rates to pay for energy efficiency but allow them to raise rates to increase generating and transmission capacity. A state policy also allows gas utilities to recover costs to pay for energy savings measures for low income customers but not other customers. He identified energy savings programs sponsored by Xcel Energy and the Colorado Springs Utilities. Mr. Geller spoke in support of House Bill 06-1147 that requires the PUC to adopt rules establishing funding and cost-recovery mechanisms for natural gas distributors to pay for conservation and energy efficiency programs. He also proposed legislation to require the PUC to allow rate increases to pay for other energy conservation programs. Legislation or PUC rule should also be adopted to require utilities to evaluate energy conservation measures prior to requesting rate increases for increased power generation capacity.
03:36 PM
Megan Edmunds, Executive Director of E-Star, explained that her organization certifies energy efficient homes and said that constructing efficient homes is cheaper than retrofitting existing homes. She explained that Colorado is a heating-load dominated state that uses natural gas to heat homes and electricity to cool homes. She expressed concern that current law (Senate Bill 01-144) does not require the PUC to consider energy efficient technologies for gas utilities such as is required for electric utilities. She explained that recent electricity outages experienced by Xcel customers during the winter were related to natural gas shortages.