Paula Carrell Paula.Carrell@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.