Industry News




 

06/04/2013

Why Don't More Utilities Push Energy Efficiency?

 
Current rate structures incentivize utilities for selling more energy, not for building efficiency programs.

Utilities in many states are rewarded for selling more energy, requiring reforms to incentivize energy efficiency, according to a new study from Oregon State University.

Recently published in Environmental Law, the study profiles key differences between how utilities address energy efficiency projects and renewable resources.

“We need to start addressing efficiency as we do renewable energy – by looking at it systematically and removing the barriers,” explains author Inara Scott, assistant professor at Oregon State and a former lawyer specializing in energy and regulatory law.

Four key recommendations could help make energy efficiency programs more attractive to utilities and ultimately benefit consumers:

1) Reorganize rate structures. Cost-recovery systems for many U.S. investor-owned utilities are based on an outdated model that ties higher returns for shareholders to producing more energy. Utilities with this model are then penalized for selling less energy if they encourage customers to adopt energy-efficient practices and products. To solve this problem, states can use ratemaking mechanisms to separate utility sales from revenues and establish performance incentives for efficiency programs.

2) Set targets and stick to them. Oregon aims to obtain 25% of its energy supply from renewables by 2025, a goal easily adopted by other states.

3) Streamline cost-effectiveness tests. This will be difficult, Scott cautions, because there is no one simple, accurate way to measure energy efficiency. “You’re trying to measure energy you didn’t use, so you’re measuring something that doesn’t exist,” Scott explains.

Some tests do exist, but they are so complicated that they can actually discourage utilities from building energy efficiency programs. However, Scott notes, conducting assessments on individual programs, streamlining test precision, and considering developing national standards will help.

4) Address market barriers. Colorado and Michigan are just two of the states that have increased the size of incentives for consumers to participate in energy efficiency programs – in some cases, participants are reimbursed for 100% of their investment. Better marketing efforts are needed to make customers more aware of incentives.

 


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Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.


When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.

 

Add highly responsive multi-zone comfort to any building project, in any climate. Our CITY MULTI H2i R2- and Y-Series VRF systems give you flexibility to fit the needs of any building. Enjoy 100% heating capacity at 0°F outdoor ambient, and 85% heating capacity at -13°F outdoor ambient.  For more information, log on to www.mitsubishipro.com


Tennant Company is a recognized leader in designing, manufacturing and marketing solutions that help create a cleaner, safer, healthier world. With thousands of satisfied customers already using award winning ec-H2O technology, why not see what you're missing? Test ec-H2O on your soils in your facility. Get a free demo.


Tennant Company is a recognized leader in designing, manufacturing and marketing solutions that help create a cleaner, safer, healthier world. With thousands of satisfied customers already using award winning ec-H2O technology, why not see what you're missing? Test ec-H2O on your soils in your facility. Get a free demo.

 

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10/21/2014

U.S. photovoltaic costs continue to decline.

10/20/2014

The EPA looks to help improve energy and air quality during educational facility renovations. 

10/17/2014

Agency says current regulations "don't protect worker health".

10/16/2014

Scientists have developed LED bulbs free of rare earth metals.

10/15/2014

Survey shows a decrease in employees coming to work sick.

10/14/2014

New efficiency ratings available for apartment units

10/10/2014

New code to increase commercial building efficiency.

10/09/2014

Take charge of your electricity bill with these quick tips.

10/08/2014

Illumination improvements take the top award for physics

10/07/2014

Study shows equipment improvements could boost efficiency. 

10/06/2014

New device integrates batteries into solar cell design.

10/03/2014

The switch to green products comes to healthcare facilities.

10/01/2014

Photovoltaic installations serve nearly 2.7 million students

09/30/2014

Incidence of fires and property loss down from 2012

09/29/2014

Academic achievement tied to responsible reporting habits

09/26/2014

Survey shows people more careful, less satisfied in public washrooms.

09/25/2014

A new study shows that switching natural gas for coal will not significantly reduce the amount of CO2 emissions being produced. 

09/24/2014

A new study shows the carbon emission reduction policies individual states have adopted are yielding results.

09/23/2014

A recent survey of industry professionals indicates that investment in energy efficiency projects will increase over the next year.

09/22/2014

Fort Carson in Colorado is well on its way to reaching the goal of net-zero energy by 2020. 

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