Why does Louisiana need an energy efficiency plan?
Efficiency Works for homes and businesses by slashing energy waste and boosting the bottom line.
- The national average to operate an efficient commercial building is $1.00 per sq.ft. In Louisiana, we’re at DOUBLE the standard; we’re paying between $1.50 and $2/sq ft!
- Louisiana families pay energy bills out of step with how cheap our energy rates are. Louisiana is in the top 10% for cheapest rates but ranks 46th for costliest bills.
- We love our historic homes and buildings in Louisiana, we love charm! But all that charm comes at a price; those older buildings just BLEED energy and waste money.
- Newer buildings have lower utility costs, because we know better. We know what works! When you build a new home, you insulate it, you seal it; you take basic steps that have become the standard to be sure it’s energy efficient.
- Its common sense in new construction, we need to take that common sense to our older structures through an energy efficiency program, because efficiency works.
Opponents say this will cost too much money for rate payers, especially commercial customers. How does the program translate into savings?
- At home or at work, efficiency works by cutting your bottom line. Typical improvements include replacing air conditioners, ductwork, adding insulation, installing efficient lighting and really bringing older structures into modern standards.
- Residential customers participating in New Orleans NOLA Wise energy efficiency program are saving an average of $800 a year on their energy bills, that’s more than 25-percent in savings!
- Efficiency works particularly for business owners. Commercial customers can cut energy waste even more, with savings going directly to their bottom line. High impact efficiency improvements for businesses include replacing outdated lighting, upgrading heating and cooling mechanical systems, installing more efficient refrigeration, to name just a few.
- Energy efficiency programs save ratepayers and businesses a lot of money. Energy efficiency typically costs about half the price of new generation and can offset Louisiana’s energy costs by over $4 billion.
But why should all rate payers foot the bill for this program, isn’t it the property owner’s responsibility to improve the structure?
- Rate payers have two futures ahead of them, and the PSC will decide which path we take – they’ll either pay for an energy efficiency plan or a new power plant.
- Efficiency works because it saves ALL customers money, whether or not they choose to participate in the program. Energy efficiency costs about $0.03 per kWh while a new natural gas plant costs $0.08 per kWh. (The Lazard Report, 2011)
- Entergy plans on building a new power plant every five years through 2031. A new power plant costs about $1B to construct – this does NOT include the fuel to run it!
- Efficiency works by lowering demand. This offsets the need to build expensive, new power plants.
How do we know that it will work, what’s the evidence for a return on investment?
- Because other states are way ahead of us, and even modest programs like our neighbors in Arkansas prove that efficiency works.
- Arkansas’ utilities sent $30M back to consumers in 2012 with their energy efficiency program savings. Their programs are expected to more than double in size from 2014-2016.
- For every dollar spent on energy efficiency, rate-payers saw a $2.50 return on investment.
- Efficiency works because it’s popular. Energy Smart in New Orleans has a 98-percent customer satisfaction rate. Due to the financial success of the Energy Smart programs, Entergy is seeking a 60-percent increase in their budget for efficiency over the next three years. (Entergy New Orleans Energy Smart)
- Louisiana’s energy efficiency programs must pass a stringent test for cost-effectiveness BEFORE they can be offered to customers. By design, energy efficiency programs must be less expensive than buying power from another source. (LPSC Final Order Energy Efficiency Docket R-31106)
What’s the potential economic impact of this program?
- Efficiency works because it boosts the local economy. Louisiana could save $4B through energy efficiency by 2030 while boosting the local economy with an additional $3B through new job creation and increased state and local tax revenues. (ACEEE Report, Louisiana 2013)
- Efficiency works because it creates good, paying local jobs. Louisiana could create 27,100 new jobs by investing in energy efficiency. (ACEEE Report, Louisiana 2013)
- Energy efficiency have a potential $3 billion economic impact by boosting local job growth and building wealth for Louisiana families by wasting less on energy and investing more in putting people to work.
Utility scale programs work on the economics but efficiency works for Louisiana’s kids as well. A recent worldwide increase in childhood asthma rates has been linked to environmental factors, including air pollution. Asthma is a leading cause of hospital stays and school absences. Increased energy efficiency means fewer emissions, less pollution, and cleaner air for Louisiana’s kids. (Asthma information from Our Lady of the Lake, Baton Rouge)
