Energy consumption worldwide has become an everyday concern as consumers fight to find ways to reduce costs and decrease harmful emissions. It is a fight that likely won’t subside as worldwide energy demand is projected to increase 35 percent by 2030, according to the Energy Information Administration. The EIA says energy demand from 1980 to 2005 outpaced supply.
“And only five states offer incentives to utility companies that help its customers use less energy”, said Stephen Heins, vice president of corporate communications for Orion Energy Systems Inc., of Manitowoc, Wis.
In most states, including Heins’ home state of Wisconsin, electric utility companies lose money by encouraging its customers to conserve energy. When consumers use less electricity, utilities’ profits decline. Only California, New York, Idaho, Delaware and Maryland use a different rate structure.
“Obviously, this disincentive impairs utilities’ willingness and ability to promote energy efficiency, despite its benefits to consumers’ bills, electrical reliability, national security and the environment,” Heins said. “In California, the results of offering incentives to power companies that reduce electricity usage have been impressive.”
Companies like Orion provide high-efficiency platforms that reduce carbon dioxide emissions and electricity bills. Since 2001, Orion has helped approximately 3,655 industrial and manufacturing facilities displace more than 334 megawatts, save more than $351 million and reduce carbon dioxide emissions by 4.4 million tons.
In December 2007, Congress passed a wide-reaching energy bill requiring the reduction of energy consumption nationwide. The Alliance to Save Energy, a national non-profit, bipartisan public policy organization promoting energy efficiency, applauded the government for its action.
As a result of the bill, lighting standards by 2020 are projected to lower consumers’ annual electricity bills by more than $13 billion and save more than 140 billion kilowatt-hours per year, according to the Alliance to Save Energy.
The reduction in energy use means approximately 100 million tons of carbon dioxide will not enter the atmosphere annually, the Alliance says. Carbon dioxide is the main global warming pollutant.
In addition to the lighting standards approved by the federal government, the energy bill requires improvements to the efficiencies of home appliances including dishwashers, clothes washers, refrigerators and freezers, the Alliance to Save Energy says.
According to the Alliance to Save Energy, the bill also:
1) Raises vehicle fuel economy standards to a level that can save American families up to $1,000 annually in gasoline costs by the year 2020.
2)Encourages development of commercial buildings that produce as much energy as they use.
3) Requires federal agencies to reduce their energy use.
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