As energy prices rise and concerns of global warming continue, government leaders are hopng Tennesseans scale back on their above-average consumption of energy.
The Tennessee Valley Authority, which phased out most of its pioneering conservation programs decades ago, will hear from energy experts and industry leaders this week about ways to limit growing regional electricity consumption. The TVA sessions Tuesday and Wednesday come a week after Gov. Phil Bredesen announced plans for an executive order to develop a state policy to reduce energy use in state buildings and boost new energy technologies in Tennessee.
For natural gas users, the Tennessee Regulatory Authority also is developing a program to help low-income households improve their energy use.
“I think all of us recognize that energy efficiency is our greatest opportunity,” TVA Chairman Bill Sansom said. “Especially when we get into periods of peak demand, the last part of the power we have to supply to our customers is very expensive.”
TVA will raise its electricity rates by 12 percent next month, largely because of the higher costs of buying or building new power generation to meet growing demand. Unlike in the past, selling more electricity often costs TVA more than the federal utility is paid.
The rising costs of additional energy — combined with the likelihood of new carbon restrictions on coal- and gas-generated electricity to limit global warming — are creating “a culture quake” for power users, according to Tennessee Environmental Council Chairman Donnie Safer.
“The reality of climate change is so dramatic and startling that once people become aware of it, they recognize that we must change our traditional approach to energy,” Mr. Safer said. “In Tennessee where energy has historically been cheap and abundant, we have a long way to go.”
HIGH USE HERE
The average Tennessean uses 39 percent more electricity than the national average, according to the most recent data available from the Energy Information Administration. With residential electric rates averaging 22 percent below the U.S. average, Tennessee’s per household consumption of electricity is nearly 2 1/2 times as much as in California where electricity is nearly twice as expensive, EIA records show.
Stephen Smith, executive director of the Southern Alliance for Clean Energy, urged TVA to shift its focus from just trying to hold down electric rates to trying to help consumers limit their monthly electric bills.
“If we are able to use less energy, that would not only help the environment but would save consumers money, even if their electric rates go up,” he said.
Mr. Safer said he thinks TVA is uniquely positioned as a federal corporation to limit its use of coal and help battle global warming. The Nashville environmentalist said fighting climate change will require a national effort similar to the rebuilding of Europe after World War II or the effort to land a man on the moon by NASA in the 1960s.
new state efforts
Gov. Bredesen also said last week he thinks TVA is “an excellent resource” that can play an important role in energy conservation and new technologies, along with the Oak Ridge National Laboratory and the University of Tennessee.
“This is an area in which we can and should take the lead,” Gov. Bredesen told the Tennessee Chamber of Commerce and Industry. “We’ll begin with the low-hanging fruit, looking at state government and how we manage our facilities and fleet more efficiently. Beyond that, I want to look at how we can support the development of new economic opportunities around research and development.”
The Tennessee Regulatory Authority, which regulates natural gas providers such as Chattanooga Gas Co., also is looking for the first time at ways to encourage more energy conservation. At the urging of TRA Chairman Eddie Roberson, a Chattanooga native, TRA is developing pilot programs to allow gas suppliers to provide more incentives for low-income households to pay for better insulation, windows and other efficiency measures.
Carson Mundy, director of consumer services at TRA, said the agency completed an energy conservation study last year and still is looking at ways to encourage Atmos, Piedmont and Chattanooga Gas to help low-income gas users limit their winter heating bills.
“Right now, we’re trying to determine the type and size of the pilot program that will best work to encourage more efficiency,” Mr. Mundy said.
changing incentives
Electricity distributors in the Tennessee Valley also are trying to work with TVA to develop programs to encourage consumers to conserve energy while still maintaining equitable and adequate rates.
Because of the rising cost of additional power, conserving energy sometimes can be cheaper for a utility than having to generate more energy.
“To go to a new rate system that sends a better price signal is a big change,” said Jack Simmons, president of the Tennessee Valley Public Power Association. “I think all of us recognize that we want to encourage efficiency and reduce the growth in TVA’s expensive power peaks. But changing the rate system in a way that is fairest to everyone is going to take some time.”
TVPPA has established a subcommittee led by Middle Tennessee Electric Cooperative Corp. President Frank Jennings to study energy conservation. Distributors expect it probably will be fall of 2009 before a new rate system is adopted to encourage consumers financially to shift their power consumption away from peak periods.
“We’ve got to change the mind-set and the attitude of the people in the valley,” Mr. Jennings said. “But I think as time goes on and more people recognize the increased cost of additional power generation during peak periods, attitudes and behaviors will change.”
Find out more
* Online energy audits are available at www.tva.com.
* Energy savings tips are available at www.epb.net or www.eere.energy.gov/consumer/.
How to participate
TVA will be hearing from experts and receiving public input:
* On energy efficiency 1-5 p.m. Tuesday at the Knoxville Convention Center.
* On renewable energy from 8:30 a.m. to 12:30 p.m. Wednesday at the Knoxville Convention Center.
* Draft plan for efficiency and renewable energy to be presented to the TVA board April 3 in Knoxville, followed by more public hearings.
Source: Tennessee Valley Authority
