Clean and Efficient
Energy Leadership for Georgia:
Addressed to the Public Service Commission of Georgia, May
16, 2007
Good morning Commissioners. Thank you for giving us the
opportunity to be here today to share our concerns regarding Georgia Power’s IRP. My
name is Jennette Gayer, and I represent the non-profit organization Environment
Georgia; we are a statewide non-profit and a non-partisan environmental
group.
America
is the most technologically and economically advanced nation in the world,
blessed with vast natural and intellectual resources and a skilled workforce. We
have a track record of responding to major challenges and achieving unthinkable
goals. If any nation in the world is capable of creating an energy system that
can fuel our economy while preserving our environment and our long-term
security, it is us.
But right now, we are failing to take advantage of our
almost unlimited potential to generate electricity from energy-efficiency and
renewable energy sources such as wind and solar power.
The United
States has historically been a leader in the
deployment of renewable and efficient energy technologies. As recently as the
mid 1990s, we were the world’s leader in solar power capacity, and we had the
second highest level in wind generation. Unfortunately, that is no longer
the case. By 2004, Japan had
three times the solar photovoltaic capacity of the United
States, and Germany's capacity was more than
twice our own. The U.S. is
now third in installed wind-power capacity, placing behind Germany and Spain.
Currently, Germany
employs over 40,000 workers in its wind-energy industry and Denmark employs
another 20,000. Both of these countries have wind resources that are similar to
conditions off of the Georgia
coast.
I’d like to highlight briefly two strategies that will help
us to catch up. Energy-efficiency and renewable energy are two of the best
strategies available. Both ready for implementation today, but unfortunately
for Georgia,
they are marginalized in the current IRP draft.
As for energy efficiency, increasing the efficiency in Georgia will
provide a broad range of benefits, including:
- Saving
consumers and businesses money on their energy bills;
- Reducing
water consumption by power plants;
- Reducing
vulnerability to energy prices spikes;
- Reducing
peak demand and the risk of power shortages;
- Supporting
local businesses and stimulating economic development;
- Enabling
avoidance of controversial energy supply projects; and
- Reducing
pollutant emissions by power plants and improving public health
Several recent national and regional studies have found that
impressive energy efficiency goals are within reach. The National Action Plan for Energy Efficiency, written by the EPA in
2006, found that adoption of cost effective energy efficiency measures could
yield more than a 20 % reduction in total electricity demand nationwide by
2025.
In some states, well designed energy efficiency programs
are saving energy at a cost of about one-half of the typical cost of the new
power sources and about one-third of the cost of natural gas supply (US Energy
Information Administration 2006).And, depending upon the customer, efficiency
program, and average bill, customers are experiencing savings of 5, 10, 20, or
30%.
The Energy Efficiency
Task Force Report of the Western Governors’ Association made an
announcement in 2006 calling for a 20% reduction in energy consumption for the
western states, to be achieved by efficiency measures by 2020. As a result, the
WGA also predicted:
- $21
billion in electricity bill savings for the western region
- $53
billion in net economic benefits (from avoided fuel purchases, investment
in generation, transmission and distribution infrastructures.)
- 17%
reduction in CO2 emissions
- 7%
reduction in NOx emissions
- Savings
of 1.8 trillion gallons of water
To date, experience in several states—including Texas, which has climate demands very similar to Georgia’s—already
indicates that energy efficiency goals can be met or exceeded in a highly
cost-effective manner.
Texas
is a great example of state where energy efficiency programs have been very
effective. Texas
was the first state to establish an EERS in 1999 (SB-7-1999, signed into law by
then-Governor Bush). The law requires electric utilities to offset a portion of
their demand growth through end-use efficiency programs. The percent offset
started at 5% in 2002 and ramped up to 10% by 2003. In 2005, the investor owned
utilities in Texas concluded the third straight year of exceeding their
legislative statewide goals and reduced demand by 181 MW—27% above their 142 MW
goal. As of January 1, 2006 utility efficiency programs have reduced demand by
592 MW. Proposals are currently being considered to increase Texas’ efficiency reduction goals to 50% of
load growth.
Georgia
should learn from the success of states like Texas and should adopt energy efficiency
goals and policies that encourage efficiency investments, such as public
benefit funds, decoupling, and state tax credits.
The current IRP relies heavily on the expansion of nuclear
reactors, but because of cost, water consumption, and the toxic waste concerns
this path is unacceptable. To increase our energy capacity Georgia should
be seriously encouraging renewable energy development from our abundant
sunshine, coastal wind, and biomass.
Going with renewables makes the most economic sense. Renewable
energy creates more jobs per dollar than traditional sources of energy.
Recent analyses by the Union of Concerned Scientists (UCS) found that requiring
20% of U.S.
electric generation to be from renewable energy sources by the year 2020 would
generate more than 355,000 new high-paying jobs and save consumers at least $49
billion in electric and natural gas bills. If Georgia does not start to cultivate
these green markets today, we stand to miss an incredible opportunity.
Additionally, with renewables, we will be shifting away from
fuels that come from outside of Georgia;
renewables will help to diversify and secure the state’s energy supply.
Moreover, renewable energy is
better for public health and the environment. Renewable energy offers a path
for our energy future that is nearly pollution free. Clean energy sources do
not emit toxic mercury pollution. Mercury pollution from coal plants has
contaminated lakes and rivers across Georgia and the U.S. so much that children and
women of childbearing age are urged to limit fish consumption. Clean energy
sources do not emit smog-, soot- and acid rain forming pollutants. And finally
clean energy sources do not emit global warming pollution. The recently
released U.N. Intergovernmental Panel on Climate Change report underscores the
urgent need for reduction of greenhouse gas emissions.
Georgia
should capitalize on an important economic and environmental opportunity. We
should promote renewables in place of fossil and nuclear fuels before it is too
late. The benefits of renewables and efficiency programs are impressive and the
time is ripe to take full advantage of them.
Thank you for your time and your attention to these very
important matters.
