Energy Exchange

Transforming an Energy Burden into an Energy Opportunity

Energy opportunityEconomic inequality has become one of the dominant political narratives of the day. It occupies discussions on both sides of the aisle, and is shaping elections from city halls to the White House. There’s a good reason for this: the continuing trends of flattening incomes, concentrated wealth, and deepening poverty are historic.

One place this reality is really hitting home for millions of Americans is on their monthly energy bill. For nearly one in three American families, paying a monthly energy bill is a challenge.

The energy burden, as the Department of Energy defines it, is the ratio of energy costs (which includes heating, cooling, appliances, and lighting from electricity, gas, and fuel sources) to household income. Nearly 40 percent of low-income households use electricity to heat their homes (the majority in the South and West), and are suffering a more severe energy burden because of factors like wage stagnation and the quality of housing at lower economic levels.  In 2014, researchers looking at the “energy affordability gap” for low income households (the difference between actual energy bills and what is considered affordable) tabulated it at almost $45 billion nationally. That is an increase of 16 percent from 2011, with nearly 60 percent of the growth accounted for by states in the mid-South, South, and east of the Mississippi. For any of those families, even a 10 percent growth in electricity costs can be destabilizing. Monthly electric bills become another factor forcing households to choose between groceries, childcare, and medical bills.

To make inroads in closing the energy affordability gap and reducing energy burdens for the most vulnerable, Environmental Defense Fund believes we need a combination of greater and scalable clean energy investment in low- and moderate-income communities, and a focus on empowering the many faces that are energy-burdened. The multi-billion dollar affordability gap certainly poses a variety of financial risks, but it’s also rife with opportunity. Read More »

Also posted in California, Energy Efficiency, Energy Equity, Energy Financing, North Carolina, On-bill repayment, Renewable Energy, Solar Energy / Comments are closed

5 Ways Pennsylvania Can Build a Smarter, More Efficient Grid

pa electric gridAcross the country, signs of a cleaner, more efficient, and more affordable U.S. energy system are emerging. But we can’t reach the clean energy future without updating the way utilities make money. Today, utilities earn revenue based on how much electricity they deliver. Companies earn less when they sell less electricity, so they have little incentive to provide energy efficiency programs for their customers.

To address this issue, the Pennsylvania Public Utilities Commission is considering changing how utilities are paid for the electricity they sell. The goal – determining whether new rate plans could eliminate the barriers to energy efficiency programs – is an admirable step toward the clean energy future. Environmental Defense Fund (EDF) has a number of ideas on how to design a more efficient grid, which we filed in comments today:

  1. Performance-based regulation – Utilities have few incentives to help people adopt solar panels or energy efficiency, so the Commission should implement performance-based regulation plans. Rather than encouraging the sale of more electricity, a performance-based framework would reward utilities for meeting goals that benefit customers and the environment, like encouraging the use of rooftop solar or increasing the use of energy efficiency programs.

Read More »

Also posted in Energy Efficiency, Voltage Optimization / Tagged | Read 3 Responses

Moms Know What’s Best: How Time-of-Use Electricity Pricing can Benefit California Families

mcaf listenedCalifornia’s “big three” utilities, at the behest of state regulators, are in the process of examining and improving how they price electricity, including something called time-of-use (TOU) electricity pricing. This option – which rewards people who shift some of their electricity use to times of day when clean energy is abundant and electricity is cheaper – can help California families create safer communities while saving money on their utility bills. Mom’s Clean Air Force California mom Linda Hutchins-Knowles agrees, and recently wrote this opinion piece in the San Jose Mercury News encouraging others to adopt TOU.

Linda, like many moms, wears multiple hats. As a mother, she wants to help leave her children a safer, more sustainable word. As an advocate, she supports increasing our use of clean energy over dirty fossil fuels to help clean our air and environment as a whole. Finally, as a consumer, she wants to do these things without breaking the bank. Read More »

Also posted in Electricity Pricing / Read 1 Response

On Clean Energy, Illinois Governor would Have Been Wise to Borrow from…Himself.

Let's map out a better future for ILBy Lisa Albrecht, renewable energy specialist with Solar Service Inc., and member of the Illinois Clean Jobs Coalition

This week, Illinois Governor Rauner gave his annual State of the State address – but, there was one big thing missing. Despite broad bipartisan support across the state for action on clean energy, Gov. Rauner failed to address this issue at all.

In summing up Illinois’ current priorities, Gov. Rauner should have looked to the remarks he himself delivered in his first State of the State address last year:

“Our top priority must be making Illinois competitive again, to grow more jobs here… Competitiveness must become our watchword.”

“We must avoid slipping further behind other states in…the capacity of our economy to grow.”

“It’s now or never for Illinois. It’s time to act.”

Those are sound principles. And, if the Governor is still committed to them, there is a clear and obvious path to achieving them: by embracing Illinois’ clean energy future through the Clean Power Plan and the Illinois Clean Jobs Bill. Read More »

Also posted in Illinois / Comments are closed

Why this Utility Giant’s $4-billion Coal Bailout is an Ill-Fated Energy Strategy

Clean energy investments are soaring worldwide, and the United States is no exception with $56 billion going toward renewable generation in 2015, an 8-percent increase over the year before.

So why are some utilities going against this trend – and risking a contest against more progressive competitors that are gaining market share at their expense?

To understand why, it helps to have a closer look at Ohio-based FirstEnergy, a large investor-owned energy company with operations in six states that has become the poster child for resistant utilities.

The FirstEnergy case also illustrates why companies that refuse change won’t be able to stop the rising clean energy tide, no matter how hard they try. Read More »

Also posted in FirstEnergy, Ohio, Utility Business Models / Comments are closed

3 Ways to Improve California’s Time-Of-Use Electricity Pilots

Jay Godwin photo - 07/31/2015 Location: The Mueller community in Austin, Texas. Caption: Mueller resident Dennis Nick is a Pecan Street program participant. He has solar collectors on his roof and an electric car in his garage. Information about his energy use can be accessed through mobile apps and on the web.California’s big three utilities – San Diego Gas & Electric (SDG&E), Pacific Gas & Electric (PG&E), and Southern California Edison (SCE) – serve approximately 80 percent of the state’s residential customers, which is why their recent move to update the state’s antiquated electricity pricing could be a game-changer for helping the state achieve its climate and clean energy goals.

In late December, while most people were on holiday, the utilities submitted plans to the California Public Utilities Commission (CPUC) to assess electricity prices that vary with the season and time of day. These plans detail the next two years of piloting time-of-use (TOU) pricing for most residential customers, and will help California reduce pollution and increase renewable energy production. Read More »

Also posted in California, Electricity Pricing, Energy Financing, Grid Modernization / Comments are closed