>>> Paula Carrell <Paula.Carrell(a)sierraclub.org> 1/17/2008 4:32 PM >>>
4. Strong Action Urged To Cut MD Energy Use
Washington Post January 14, 2008
By Lisa Rein
Maryland should force utilities to take aggressive steps to cut energy
consumption, and the state should create a multimillion-dollar fund to give
homeowners an array of incentives to use less power, Gov. Martin O'Malley's
top energy advisers will recommend today.
The blueprint, to be released by the Maryland Energy Administration, will
offer 20 proposals to help O'Malley (D) deliver on his ambitious pledge to
reduce the state's energy consumption by 15 percent in seven years and
stave off rolling blackouts that experts predict could occur in three
years.
The report recommends that the state encourage the fledgling solar and
wind energy industries to invest in the region and help Maryland more than
double its use of renewable power.
The 85-page "Strategic Electricity Plan," a copy of which was provided to
The Washington Post, acknowledges that no silver bullet exists to roll back
the record electric rate increases that hit Maryland customers last year
after deregulation fully took effect.
And there is no way to quickly generate new power to meet growing demand,
the report says. Demand jumped almost 16 percent between 1999 and 2005,
while the supply grew 1.9 percent.
"The plan should be viewed as 'silver buckshot' -- a series of measures
to promote affordable, reliable and clean energy for Maryland," the report
says.
Malcolm Woolf, the state's energy administrator, said that "we have
ignored energy issues in the state" since the General Assembly agreed in
1999 to bring competition into the electricity market. He called the
strategic plan an "opening salvo in a larger effort to take control of
Maryland's energy's future."
Electricity prices rose for millions of residential customers last spring
when rate caps came off, and the competition between providers that
lawmakers hoped for has not materialized. Maryland residents pay among the
highest electricity rates on the East Coast.
With population growth and ever-larger, gadget-rich houses expected to
increase energy demand by 17 percent between 2005 and 2016 and no major new
transmission lines on the horizon, the state soon could be dangerously
short on power, state regulators have predicted.
The recommendations to be released today are expected to become the
centerpiece of a wide-reaching package of energy legislation O'Malley will
present to the General Assembly this month. The governor might decide to
implement some of the proposals this year and leave others for next year,
said O'Malley's spokesman, Rick Abbruzzese.
To increase the supply of power, energy officials are recommending that
the General Assembly approve a bill to force utilities to contract
long-term with power generators, a change already under review by the state
Public Service Commission, which regulates the power industry.
Officials also want to establish a state fund to promote conservation
programs and attract renewable energy companies. Money would come from an
auction this summer of permits for carbon emissions. The auction will be
held by a consortium of New England and mid-Atlantic states set up to
reduce carbon dioxide pollution from coal-fired plants. Energy officials
estimate the auction could generate from $40 million to more than $100
million for Maryland.
The fund would help homeowners, particularly low-income customers, pay
for furnaces, air conditioners and other appliances that use energy more
efficiently but are more expensive than traditional models.
It also could offer a system of incentives to encourage consumers to buy
energy-saving fluorescent light bulbs and install high-tech devices that
shut down washing machines, dishwashers and air conditioners when demand
for electricity soars on hot summer days. These "smart meters" also tell
homeowners electricity prices a day in advance, giving the customers a
chance to pay lower rates if they can move usage to off-peak times.
State regulators are already reviewing conservation plans submitted by
Pepco and Baltimore Gas and Electric. The utilities would be allowed to
pass on the costs to consumers, but "the idea is that, eventually, everyone
will pay less because of these investments in conservation," Woolf said.
Robert L. Gould, vice president for corporate communication for
Constellation Energy Group, the parent company of Baltimore Gas and
Electric, said the company "looks forward to a continued thoughtful and
constructive dialogue with the O'Malley administration and the
legislature."
Maryland has mandated that 9.5 percent of the state's energy will come
from renewable sources by 2022, an aggressive goal when the legislature
agreed to it. But energy advisers who have looked at the experience of
other states say Maryland could increase the share to 20 percent.