![]() ![]() But wait, you ask, how can switching to clean energy save us money on our power bills? Several reasons. 1. "Improving energy efficiency means using less electricity to do the same or more work... For this reason, even if the retail price of electricity increases modestly under the Clean Power Plan, households and businesses will use substantially less electricity due to efficiency measures, and their bills will still decline." I'd add that energy efficiency is by far the cheapest form of energy out there - "negawatts," or the energy you never have to use in the first place, being a LOT cheaper than building new power plants (particularly super-expensive nuclear power plants), transmission lines, pipelines, etc. 2. "The net effect is that thanks to efficiency measures, electricity bills will rise in 2020 by just 1.4 to 1.5 percent and then decline going forward. In 2025, they will be 3.8 to 4.4 percent lower than business as usual. By 2030, electricity bills will be 7.7 to 8.4 percent lower than they would be in the absence of the Clean Power Plan" 3. Actually, "this report likely underestimates the potential savings under the Clean Power Plan" because "it relies on EPA's excessively high estimates of the cost of efficiency programs" (the EPA, for whatever reason, "starts its analysis by treating efficiency measures as 60 to 100 percent more expensive than the evidence indicates"). 4. It's also worth emphasizing that "actual outcomes will depend on Virginia's policy choices." In other words, if Virginia's Dominion-owned-and-operated General Assembly were to declare independence from their paymasters and put in place smart energy policies (decoupling, net metering, a strong/mandatory Renewable Portfolio Standard, a price on carbon and other pollution, etc.), the benefits to Virginia could be far, far greater than if they keep mindlessly doing what Dominion et al want them to do. Finally, I'd toss in the charts by Lazard indicating how cheap clean energy (particularly efficiency and onshore wind, but increasing utility-scale solar as well; see Buffett strikes cheapest electricity price in US with Nevada solar farm -- an amazing 3.87 cents per kilowatthour, vs. about 9 cents per kilowatthour in Virginia). And remember, the price of fossil fuels and fossil-generated electricity does not include the enormous health and environmental costs stemming from their production, processing, transportation and combustion. On the other hand, the price of fossil fuels and fossil-generated electricity DOES benefit from huge implicit and explicit federal and state taxpayer-funded corporate welfare (aka, "subsidies") to those fuels, far greater by orders of magnitude than anything clean energy has received over the decades. In sum, the Clean Power Plan is not nearly as ambitious as it should or could be, but it's at least moving in the right direction for Virginia's economy and environment. As this study shows, it even ends up lowering Virginians' power bills. |