Consumer Advocate Says Save-A-Watt is Bad Deal

Consumer Advocate Says Save-A-Watt is Bad Deal

Jul 31 - The News & Observer

An advocate for consumers warned state regulators this morning that Duke Energy's energy efficiency proposal, called Save-a-Watt, is a bad deal for Duke's customers.

In a hearing before the N.C. Utilities Commission in Raleigh, energy consultant Richard Spellman denounced Save-a-Watt as an overpriced proposal that would deliver minimal efficiency to customers. Spellman has said that under Save-a-Watt, a compact fluorescent light bulb that costs $1.65 at Wal-Mart would end up costing Duke's customers $18.23.

The plan "is a bad approach for Duke ratepayers, but it is a great deal for stockholders of the company," Spellman said.

Spellman, president of GDS Associates in Georgia, testified for the Public Staff, the state's consumer advocacy arm. The Public Staff is one of a dozen organizations opposing Save-a-Watt. Other critics include the City of Durham, Wal-Mart, the N.C. Council of Churches and environmental organizations.

Duke's executives and experts testified during three days of hearings this week. Duke says that energy efficiency must be profitable to become a viable option. Otherwise it will always remain the last resort.

Under Save-a-Watt, customers would be paid financial incentives to invest in technologies and upgrades to make their homes and businesses more efficient. All ratepayers would pay for the incentives, technologies, program administration and other costs through their monthly bills.

Duke has asked the N.C. Utilities Commission for a quick decision so the company can introduce the program to its customers. Duke, based in Charlotte, has 1.8 million customers in North Carolina.

john.muraski@newsobserver.com or (919) 829-8932

-----

To see more of The News & Observer, or to subscribe to the newspaper, go to http://www.newsobserver.com.

Copyright (c) 2008, The News & Observer, Raleigh, N.C.

Distributed by McClatchy-Tribune Information Services.