Yesterday I linked to this article by Joseph Romm in Salon about how efficiency measures could solve many of our energy problems. His piece starts with the following analogy:

Suppose I paid you for every pound of pollution you generated and punished you for every pound you reduced. You would probably spend most of your time trying to figure out how to generate more pollution. And suppose that if you generated enough pollution, I had to pay you to build a new plant, no matter what the cost, and no matter how much cheaper it might be to not pollute in the first place.

Well, that’s pretty much how we have run the U.S. electric grid for nearly a century. The more electricity a utility sells, the more money it makes. If it’s able to boost electricity demand enough, the utility is allowed to build a new power plant with a guaranteed profit. The only way a typical utility can lose money is if demand drops. So the last thing most utilities want to do is seriously push strategies that save energy, strategies that do not pollute in the first place.

Yet money invested in energy efficiency can generate huge savings in energy costs. According to a report filed with the Iowa Utilities Board by the Iowa Association of Electric Cooperatives,

In 2007, Iowa’s electric cooperatives, which provide electricity in each of the state’s 99 counties to approximately 650,000 Iowans, invested $11 million in energy-efficiency programs. Participation in the programs by electric cooperative member-consumer-owners in 2007 resulted in approximately $30.3 million in energy savings.

There also was an environmental benefit to the investment in energy-efficiency programs. By reducing demand for electricity, consumers reduced the amount of electricity that utilities would otherwise have generated, which would have placed emissions into the air. The energy savings over the life of the energy-efficiency measures installed in 2007 is equal to enough electricity to provide power for approximately 34,000 homes or a city the size of 85,000 people, which is equivalent to Iowa City and Coralville, combined.

The Salon article describes various state regulations that have helped reduce energy consumption in California.

While I would welcome action on that front by the Iowa legislature, it’s important to note that state regulators can push utilities to do more even without any new laws being passed.

This week three environmental groups (Iowa Environmental Council, the Sierra Club and the Environmental Law and Policy Center) submitted expert testimony to the Iowa Utilities Board regarding problems with MidAmerican Energy’s efficiency plan for the years 2009-2013. This press release from the Iowa Environmental Council provides more details:

Editors Contact: Lynn Laws

Iowa Environmental Council

515-244-1194, ext 210

lynnlaws@iaenvironment.org

July 29, 2008

FOR IMMEDIATE RELEASE

MidAm Energy Efficiency Plan Falls Short

Clean energy advocates call MidAmerican Energy’s new energy efficiency plan a good start, but note missed opportunities.

“At a time when energy prices are sky rocketing and global warming regulation is looming on the horizon, MidAmerican must take all the cost-effective energy efficiency steps available,” said Nathaniel Baer, energy program director for the Iowa Environmental Council.

“The programs they propose simply don’t take advantage of the opportunities that are out there to save money and protect the environment,” Baer added.

Environmental advocates submitted testimony Monday responding to MidAmerican’s Energy Efficiency Plan for 2009-2013.  Under Iowa law, public gas and electric utilities, including MidAmerican Energy and Alliant Energy, must create comprehensive plans for energy efficiency for all types of customers.  Programs often include rebates or incentives for energy efficient equipment like advanced lighting, heating and air conditioning systems, insulation, energy efficient buildings, and other types of equipment and technology, as well as customer education. The Iowa Utilities Board must approve these plans, with input from stakeholders provided in a formal proceeding before the Board.

The Iowa Environmental Council, the Sierra Club and the Environmental Law and Policy Center submitted testimony by expert witness, Geoff Crandall of MSB Energy Associates, yesterday detailing significant shortcomings in the 2009-2013 MidAmerican Energy plan:

–          The plan understates the potential for energy efficiency improvements, especially in the industrial sector, which consumes 50% of the electricity in MidAmerican’s service territory;

–          The plan fails to include assistance to help consumers generate their own energy using renewable energy systems such as small solar panels (photovoltaic or “PV”), small wind turbines, and solar hot water heaters.

–          The plan does not incorporate enough next-generation lighting technology such as L.E.D. bulbs.

–          The plan fails to provide adequate funding for public education particularly as, it relates to the high energy needs of plasma TVs and home entertainment systems, and about unplugging appliances that use power even when they have been turned off (known as “phantom load.”).

“We can’t do this half way.  The end result of failure is billions of dollars spent on new power plants and thousands of tons of pollution,” said Wally Taylor, an attorney with the Sierra Club.  

“The Utilities Board has to step up and force MidAmerican to do the best job it can here,” he added.

Iowa Utilities Board’s decision is due by the end of 2008. — end —

After the jump you can find contact information for people who can provide copies of this expert testimony.

UPDATE: The Iowa Utilities Board released a statement today urging Iowans to “take steps now to reduce the impacts of increased energy prices this winter heating season”:

Many utilities offer cash rebates for the purchase of energy efficient appliances.  Some Iowa utilities, including MidAmerican Energy Company and Interstate Power and Light Company (Alliant Energy), have increased rebate amounts on energy efficient appliance purchases made by flood-affected customers this year, so inquire with your local utility.

Examples of wise energy-efficiency investments, regardless of utility or even manufacturer rebates, include programmable thermostats, high efficiency heating and/or cooling systems, hot water heaters, replacement windows, additional or replacement insulation, washers or dryers, refrigerators, and stoves.  To assure energy efficiency when purchasing new appliances, look for the ENERGY STAR label.  More information about the ENERGY STAR program for improving energy efficiency is available at www.homeenergysaver.lbl.gov.

A simple, short-term step for conserving energy is to adjust your thermostat for sleeping or periods when your home will be unoccupied.  If constantly changing your thermostat is difficult, consider a programmable thermostat.  Another inexpensive step to help mitigate heating costs is to weatherize around leaky windows and doors and on exterior walls in areas that are usually cold or drafty.  Please contact your local utility for additional energy efficiency information in preparation for this winter.

The full text of this press release is after the jump.