Paid to Save | Green Energy News

May 2, 2004 – Vol.9 No.6

PAID TO SAVE.

As economies grow electric utility companies need to be certain they have the power generation capacity to meet demand. More homes mean more power needed. New businesses mean more demand on generating capacity.

Utilities can meet this expected demand by building new power plants, buying electricity from others or by taking the energy conservation route - save electricity in one place to use it elsewhere. The utility can ask consumers to voluntarily cut back on power consumption or it can pay them to do so by creating financial incentives to save electricity.

The conservation route, if possible, can be a win-win-win solution for all.

Voluntary conservation obviously frees up electricity at no cost to utilities, but even paid incentives for conservation may be a less expensive choice than building a new, expensive power plant - a win for the utility.

From the customers point of view conservation reduces electric bills and saves them money, but when the utility creates financial incentives to conserve the customer saves money on electricity AND he’s paid to do it. It’s a big win for the customer.

Finally everyone wins. One less power plant built (if its a polluting one) means less air and water pollution for all.

Through its Smart Business Energy Saving Upgrade Program, Glendale Water and Power (GWP) offers small businesses energy efficiency upgrades up to $1000 as a way to cut customer’s bills, and of course, reduce the need for GWP to acquire more capacity.

The Program includes an energy audit of the small business and recommendations to reduce energy consumption. Upgrades - paid for by GWP - can include efficiency improvements like adding window tinting to reduce air conditioning load.

Since the summer of 2002, when the program started, over 800 of the 5000 small businesses operating in the City of Glendale, California have taken advantage of the program. On average the efficiency improvements have cost $1030 (slightly more than the maximum offered by GWP), but have saved each customer $565 per year.

To GWP the program is expected to reduce system demand by 371 kilowatts. GWP figures its payback period for the amount of upgrades it has paid for can be as little as 4.4 years. Energy efficiency improvements should last at least 5 years, but probably more. Visit GWP at http://www.GlendaleWaterAndPower.com/