The Public Utility Commission (PUC) is scheduled to vote Friday, July 30th on proposed new energy efficiency goals aimed at reducing the rate of demand for electric power.
Under one proposal, companies would have to reduce the rate of demand for power from 20 percent of projected annual growth rate to 30 percent by 2012. This demand would have to be cut by 40 percent by 2013 and by 50 percent by 2014.
Some companies stated that such a schedule would be very expensive for them, and in return it would be very expensive for their customers. The commission has been considering the new efficiency goals for several weeks, but asked the staff to rework the formulas.
Under the latest proposal prepared for the commission’s consideration, the goal for load growth demand reduction would be 20 percent by the end of this year and for 2011. The target would jump to 25 percent in 2012 and top out at 30 percent in 2013.
Additionally, the Texas Public Policy Foundation published a study suggesting that that the efficiency targets might actually raise overall costs for electric power. The organization argues that market-based efficiency programs would be more beneficial because generating companies would be searching for ways to lower the cost of production and savings would be passed on to end-use consumers.
To view the report, please visit the following link: “Energy Efficiency: Is Texas Getting Its Money’s Worth?”