Last week’s post ended with a suggestion to use a benefit/cost metric like that produced by ACEEE, shown in the chart. The results of ACEEE’s study indicate that energy efficiency is the cheapest resource for “producing” energy. As long as it is the cheapest source, let’s keep buying. The regulated utility business is weird. The energy efficiency business is off-the-chart weird. Why? Because we produce the ballyhooed tawagem. We produce a lack of something. Nothing. A vacuum. We save energy at a lower cost per kWh than it costs to generate a kWh, with anything.So, what does this mean? How…
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This week, I was handed a layup via this opinion piece from a Montanan. He describes “verification and measurement” as a “cottage industry of consultants running around figuring out what light bulbs end up in what rooms and what their average hours of use will be. They compile this info, run it through a bunch of formulas and computer programs.” The evaluation of Northwestern Energy’s programs resulted in them being ordered by the PSC to refund ratepayers $3 million of cost recovery. My first point is he should be grateful that someone pointed this out. However, his solution, state-run programs,…
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