Energy efficiency still reigns supreme as the least expensive and most abundant energy resource. It doesn’t generate as many headlines as other resources, such as fuel cells, natural gas or solar, but energy-efficiency’s impact on productivity has kept U.S. electricity demand flat since 2007 even while GDP rises.
No longer is economic growth dependent on consuming more energy.
A decade ago, Rhode Island’s legislature, with bipartisan support, wisely passed a law requiring utilities to meet our state’s energy needs in the least-expensive way possible. It is called the Least Cost Procurement Law. Not surprisingly, energy efficiency is the least-cost option and has resulted in nearly $2.3 billion in economic benefits in Rhode Island since 2008, according to analyses conducted by the Acadia Center, a clean-energy-advocacy organization. Ninety-eight million dollars was saved during the winter of 2014 alone.
Without savings from electric-efficiency programs, regionwide electric demand would have been 13.7 percent higher and wholesale electricity prices would have been 24 percent higher.
The energy-efficiency market is robust, with more than 8,000 employees in the state. These jobs are in hands-on fields, such as installation and electrical work. Such jobs can’t easily be outsourced, and they pay well and typically include benefits.
I am proud to work for Schneider Electric, a company that employs nearly 1,000 people in Rhode Island and has its own mission to drive energy-efficiency efforts in our buildings and operations. We know that efficiency programs are the right thing to do to move sustainability forward in our business and communities. We also know that when we reduce our utility bills, we’re able to reinvest those savings back into our business.
These savings also compound across the entire supply chain. Not only can we manage our costs better, but the energy-efficiency measures of our local suppliers help them keep costs down too. This is a virtuous cycle that enables us all to buy materials for less, manufacture products for less and, ultimately, sell them to customers at a better price, making us more competitive and attractive in the market.
Everyone in Rhode Island should have access to affordable energy, and efficiency is the cheapest way for our state to meet its energy needs. When we invest in efficiency, all electricity customers pay less than it would cost to generate that same power.
It is unfortunate that Rhode Island’s 2018 budget will weaken our state’s energy-efficiency programs. Lawmakers diverted $12.5 million in ratepayer-paid, energy-efficiency funds to fill holes in the state budget. This has left cost-effective, energy-efficiency programs at reduced levels.
We can’t afford to lose our competitive edge by dismantling energy-efficiency programs, and we shouldn’t, because Rhode Island’s energy-efficiency standards didn’t just deliver on their promise to create jobs and save ratepayers money; they over-performed and returned about $4 for every $1 invested.
While we recognize and applaud Rhode Island’s energy-efficiency leadership to date, now is the time to invest in energy efficiency even more, not weaken our progress.
We urge legislators who value the long-term benefits of energy efficiency to advocate for and defend this cornerstone program from future rollbacks. Rhode Island’s energy-efficiency policies are a textbook example of how smart policy can help create jobs and boost the economy, and we’ve only just begun to tap into the benefits. Policymakers should strive to ensure Rhode Island is a competitive, global leader in manufacturing – and invest in energy efficiency.
Dave Johnson is the executive vice president of Schneider Electric’s information technology division.
