By Associated Press
WASHINGTON -- People could save as much as $15 billion annually if they had
more information about fluctuations in the price of electricity and then acted
to cut power usage when prices were expected to be high, congressional
investigators conclude.
In a study examining experimental programs in real-time power-pricing, they said
widespread use of demand-response" programs would cut electricity bills and
ease pressure on grid systems during peak demand periods.
The study by the Government Accountability Office focused on pilot programs in
New York, Georgia, Florida and New York. It examined power costs for 53
government buildings, about two-thirds of which participated in a programs where
electricity use could be reduced at a time when the cost was expected to be
highest.
The findings, and an examination of various private studies on the pilot
programs in recent years, showed that "widespread use demand-response
programs could result in savings ranging from $5 billion to $15 billion,
depending on the extent of the participation and the cost implementation,"
according to the auditing arm of Congress.
Sen. Susan Collins, who asked for the study, said "most consumers are not
given the option of saving money on their electricity bills by using electricity
at off-peak times" or cutting back on power use when prices get expensive.
That is because both residential and commercial customers do not know the
real-time cost of electricity at any given time or lack the equipment or
communication ties with utilities to adjust power use with changes in price, the
study said.
"Our current system is tilted toward more supply always being the
answer," said Collins, R-Maine, who on Sunday made available a copy of the
findings.
The agency said that during a heat wave in New York in 2001, demand response
programs saved customers $13 million because power use was temporarily
curtailed. An experimental program in Florida achieved average savings of 11
percent in annual electricity costs.
The federal government saved an estimated $1.9 million in electricity costs in
13 of the buildings that participated in a demand-response program from 1999 to
2003, the report said.
If such programs were put in place in all of largest nonmilitary government
buildings, the savings could reach $114 million over five years, the study said.
The report also cited examples such as:
--the manager of a textile mill in rural Georgia who cut the use of power from a
utility during high-price periods and, instead, used an onsite generator, saving
$1 million a year.
--a group of residential customers in Chicago that reduced their power costs by
an average of nearly 20 percent by taking part in a pilot-program where they
received notice of price increases in advance so they could cut back their use.
But the GAO said there were significant barriers to expanding such pilot
programs.
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