City Water, Light, and Power wants to build a new coal-fired power plant to replace two aging electric-generating units. Over the past year, the Springfield City Council's utilities committee has convened meetings to evaluate the overall scope of the project. So far, much of the discussion has centered the size of the plant, the location of the coal storage pile, and whether CWLP should partner with another power user to finance the project.
There's no questioning the need for a new plant, preferably one equipped with cutting-edge technology. However, lost in the discussion has been any consideration of greener, cleaner forms of energy that CWLP might want to pursue.
A quick check of municipal utility programs around the country indicates that energy efficiency and renewable energy are becoming much more pragmatic choices. In many cases, the cost of an energy-efficiency program is less than the cost of generating, transmitting, and distributing a comparable amount of electricity from a centralized power plant. Utilities are also finding that alternative energy sources such as wind, solar, and biomass can improve energy security through diversification and increase system reliability while decreasing air pollution and conserving resources.
CWLP deserves credit for having several programs in place that encourage customers to make their homes and businesses more energy efficient. More, however, can be done.
Since 1976, Iowa's Osage Municipal Utility has held peak energy demand below 3 percent and saved the town of 3,800 residents more than $1 million by providing a variety of energy-saving services. These include free use of electric meters to locate inefficient appliances and rebates for tuning up air conditioners and furnaces.
In Arizona, the Tucson Electric Power Co. provides lower electric rates to customers who build or purchase a highly energy-efficient home. During construction, the utility helps the homebuilder identify practical design and system improvements to reduce heating and cooling costs. In 2002, approximately 32 percent of the new homes built in Tucson met increased performance standards for energy use, reducing power demand by nearly 5,000 kilowatts.
The Sacramento Municipal Utility District provides free shade trees to help customers reduce air-conditioning loads and electric bills. The utility estimates a savings of more than 26 million kilowatt-hours of electricity once all of the trees mature.
These energy-saving programs can yield other benefits to communities. According to state economists in Nebraska, energy efficiency has an economic multiplier of $2.32. This means that every $1 spent in conserving energy generates $2.32 in local economic activity by creating jobs to assess, install, and retrofit energy-efficient equipment in buildings and homes.
Across the country, municipal utilities are also beginning to harness the wind, the sun, and other renewable resources to generate electricity. The cost of producing wind energy has plummeted; it is now competitive with the cost of newly built electric-generating facilities. Because wind power is relatively clean, it could help CWLP reduce emissions from the burning of coal.
Some utilities are building their own wind turbines, while others are purchasing electricity from large-scale wind farms. One municipal utility, Waverly Light and Power in Iowa, has set a goal of satisfying 10 percent of its energy requirements through renewable resources.
Utilities are also stimulating the use of alternative energy. Seattle City Light offers net metering to customers who want to generate their own power with small wind, solar, or fuel-cell systems. Net metering allows a customer to be connected to the utility's distribution grid. Any excess electricity generated by the customer is credited to the next bill at the same rate at which the customer is charged for electricity.
Seattle also allows customers to make voluntary payments on their regular bills to support renewable-energy programs. Solar panels have been installed at two elementary schools, and more are on the way.
As CWLP plans for a new power plant, now is a good time to consider energy alternatives. More than 20 years ago, CWLP was one of the first utilities in the state to use flue gas-scrubbing equipment to reduce emissions that cause acid rain. CWLP has a unique opportunity to again lead the energy technology revolution by helping its customers become more energy efficient and take advantage of cleaner energy resources.
