Duke ready to push a turn-off plan that could be a turn-on for energy efficiency

 

May 1 - McClatchy-Tribune Regional News - Christopher D. Kirkpatrick The Charlotte Observer, N.C.

It might seem as odd as paying farmers not to raise crops.

But just like those New Deal-era programs, Duke Energy Corp.'s plan to sell less electricity by turning customers' power off instead of on makes social and financial sense, Duke's Chief Executive Jim Rogers has said.

The details of the energy efficiency program, called save-a-watt, will be filed with the N.C. Utilities Commission as early as this week, the company said.

Researched with several environmental groups, the program is designed to shave 800 megawatts of customer power demand over four years from Duke's system. That's equivalent to the output of the company's proposed $1.98 billion coal-fired power unit for its Cliffside facility west of Charlotte.

Just like the cost of that unit, Duke would pass along the expense of its new energy efficiency program through higher rates. It becomes an investment just like anything else, the company said.

"We can earn a return and that would (persuade) us to do more energy efficiency," said spokesman Tom Williams.

It's standard practice for other utilities around the country, where electricity is generally more expensive and customers have a financial incentive to conserve. In the Carolinas, power rates are about 20 percent below the national average.

But environmentalists have claimed Duke could spend more money to lessen demand instead of spending extra money to build more plants that would pollute.

"If the other stuff is going to have rate impacts, then we support the program that's better for the environment," said Christa Wagner, the N.C. Sierra Club's director of Government Relations.

Last year, as Duke argued before the commission for approval of two coal-fired units at Cliffside, Rogers announced that Duke would spend $50 million extra a year on energy efficiency programs in the Carolinas. It also said it would retire the equivalent watts saved through efficiency programs from its fleet of aging coal-fired units -- the kind environmentalists say are the dirtiest and contribute to global warming.

Environmentalists opposing Duke's Cliffside request complained the company had done little to research efficiency and renewable energy sources, such as the sun and wind. The commission approved only one of the 800-megawatt units.

Paying to Turn the Power Off

Duke Energy Corp. customers might receive a break on bills to allow Duke to turn off appliances at different times during the day or under certain circumstances, under energy efficiency programs soon to be announced. Customers would have to opt out.

The programs are designed to lessen electricity demand and stress on the power grid. They also lessen the need to build new power plants, cutting down on air pollution and its effect on global warming, environmentalists say.

Duke, the Carolinas' largest utility with 2.3 million customers, would use sensors over its power lines to contact computer chips embedded in appliances. The capability to shut off air conditioning exists now, but Duke hasn't activated it in Carolina homes for more than a decade, the company said.