CEA Newsletter August 2010

With the House and Senate prepared to debate Gulf spill “response” legislation prior to the August Congressional recess, Consumer Energy Alliance (CEA) president David Holt sent a letter to House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, outlining concerns with the current approach and urging that Congress wait for the results of a full investigation of the Deepwater Horizon incident before moving forward with sweeping legislation such as the bills that will be debated this week – which in their current form would cause additional job losses in Gulf Coast states, reduce domestic oil and natural gas production and hammer the US economy.

Holt issued the following statement after delivering the letter to Speaker Pelosi and Majority Leader Reid:

“The events that occurred on April 20 in the Gulf of Mexico are tragic on many levels – beginning with the loss of 11 men and the pain their families feel to this day. However, the legislation currently being discussed in Congress as a “response” to this tragic accident will do little – if anything – to strengthen the safety of domestic oil and natural gas production.

“By all accounts, the bills now pending in both the House and Senate would significantly limit the ability of the domestic energy exploration and production industry to meet the ever-growing energy needs of the nation – causing additional job loss, threatening American energy security and crippling an already anemic economy. Congress would be well-served to move forward in a careful, deliberative manner in order to ensure that any unintended consequences, as outlined in this letter, do not become a reality.  This nation needs a robust, balanced energy policy that both recognizes the role that oil and natural gas play in meeting more than 90 percent of our current energy demand and works to begin building and diversifying our alternative energy industry over the next several decades.”

Read the letter here.

Also, answer CEA’s Call to Action on Rolling Back the Offshore Drilling Moratorium by signing our petition to President Obama and Congress here. Act today and let the Administration know that you want to put hardworking Americans on the Gulf Coast back to work!

David Holt
President

 

Roll Back the Moratorium: Put Hardworking Americans Back to Work!
Sign CEA’s petition urging President Obama to reverse the moratorium on deepwater drilling now. While we witness the devastating consequences of the Gulf of Mexico spill on the environment, we now know that a moratorium on drilling will cause severe economic repercussions. The oil & gas industry provides significant amounts of jobs and revenue for Gulf residents. The Administration’s kneejerk reaction may have consequences reaching far beyond the oil spill and into the future – rigs are already leaving the Gulf.

Please sign the petition to end the moratorium and safeguard American jobs before more damage is done. Sign the petition today!

 

 

Help Defeat Efforts to Ban North American Energy and Increase Prices at the Pump!
The Low-Carbon Fuel Standard (LCFS) is being sold to the American public as a way to blend transportation fuels with low-carbon alternatives so that tailpipe CO2 emissions can be reduced. But the fact is that affordable and reliable lower-carbon fuel options are not yet available. As a result, an LCFS simply will increase the cost of diesel fuel and gasoline and will place certain domestic supplies of transportation fuels off limits. Increasing the cost of transportation fuel and U.S. dependence upon foreign sources of petroleum is simply unsound energy policy.

Join our effort to defeat these measures, which would put an economic stranglehold on America and leave U.S. consumers stuck with higher prices at the pump. Send in your comments today!

 

Getting Serious About White Roofs
Last week, we included the white roof recommendation in our list if five summertime energy savings tips. It was advice straight from U.S. Energy Secretary Chu, but because Chu initially spoke of the value of white roofs on The Daily Show last year, some people did not take him seriously.

Last week, Chu made clear how serious he was when he directed all Energy Department offices to install white roofs during new construction. Many news sites reporting on the development could not resist the headline, White is the new green. The New York Times noted that the benefits of white roofs go beyond simply reducing cooling costs. They actually can help keep entire cities cooler, by mitigating the “heat island effect,” in which large concentrations of dark, heat absorbent surfaces like asphalt serve to make urban areas hotter than surrounding regions. (No, you weren’t imagining that!) Read blog…

 

Using Renewable Energy
Interested in discovering ways to use renewable energy around your home? The U.S. Department of Energy maintains a wealth of information on what you can do with renewable energy. Check out these tips:

To learn more about using renewable energy, visit the Renewable Energy section of EnergySavers.gov, a consumer-geared website of the U.S. Department of Energy.

China Rejects IEA’s Claims About Energy Consumption
Though the International Energy Agency recently announced that China had overtaken the United States as the top energy-consuming nation in the world, China disputes that assertion. Read article…

 

U.S. Department of Energy Backs Hawaiian Wind Power Project
Energy Secretary Steven Chu recently announced that the Department of Energy has finalized a $117 million loan guarantee for the Kahuku Wind Power project, which is expected to create over 200 local jobs. Read article…

 

CEA Defends, Supports Natural Gas at EPA Hearings
As we have discussed in previous newsletters, the EPA is currently in the initial stages of developing and executing a study that will examine the relationship between hydraulic fracturing and drinking water. CEA has engaged in every opportunity for public and industry input and recently participated in EPA public hearings in Texas, Colorado, and Pennsylvania.

In addition to our attendance, CEA rallied several friends and affiliates to participate in the meetings and voice their support for the safe utilization of hydraulic fracturing, a technology that is integral to developing clean-burning natural gas. In Fort Worth, over 600 citizens attended and 110 people spoke, a majority of whom spoke of their concerns with contamination and the effective of regulations. In Denver, conversely, the comments were mostly supportive of hydraulic fracturing and expanded drilling, though some remained skeptical about its impact on the environment and public health.

The latest hearing in Canonsburg, Pennsylvania- located in the heart of the Marcellus Shale- proved to be the most emotional meeting thus far. With approximately 1,200 citizens in attendance and over 150 speakers, this hearing certainly illustrated the broad concerns and immense public scrutiny expanding drilling has garnered. A vast majority of the speakers recounted stories of well contamination and other problems that they attributed to hydraulic fracturing. However, a majority of these accounts of contamination have not been verified by the Pennsylvania Department of Environmental Protection as a result of hydraulic fracturing. Proponents of hydraulic fracturing continually underscore the fact that no link between water contamination and hydraulic fracturing has ever been identified but understand that industry needs to address public concerns and maintain public trust on issues associated with public health.

CEA continues to highlight that hydraulic fracturing must be held to high standards, and industry must be accountable for any wrongs that may occur. However, as the study proceeds, CEA also wishes to emphasize that we must allow science and objective fact guide the study, not misdirected emotional attacks. The concerns about the safety of hydraulic fracturing need to be addressed appropriately, but we must also balance the economic benefits expanded natural gas production can bring.  For example, the full development of the Marcellus Shale could produce over 800,000 new jobs over 30 years and generate billions in state revenue ($18 billion for Pennsylvania alone).  Producing domestic gas not only gives a significant boost to the economy, it also bolsters national energy security and provides a cleaner energy that will serve as a bridge fuel as we move to alternative, greener energy.

The fourth and final hearing will take place August 12 in Binghamton, NY, where there is currently a moratorium on drilling in the Marcellus-Utica Shale until a more thorough environmental assessment is completed. The immense popularity of the issue in the New York region compelled the EPA to host three hearings to accommodate more speaking slots, all of which have already been filled. CEA will attend and provide comments, and we will report back following the hearing.

As the study progresses, we encourage everyone to submit their written comments to hydraulic.fracturing@epa.gov. For talking points, please contact Natalie Joubert at njoubert@consumerenergyalliance.org or Andrew Browning at abrowning@consumerenergyalliance.org.

 

Research Partnership to Secure Energy for America
The Research Partnership to Secure Energy for America (RPSEA) is a 501(c) (3) private consortium that manages research dollars established through the Energy Policy Act of 2005 for the oil and gas industry.

“The Research Partnership to Secure Energy for America’s mission is to provide a stewardship role in ensuring the focused research, development and deployment of safe and environmentally responsible technology that can effectively deliver hydrocarbons from domestic resources to the citizens of the United States,” says RPSEA President C. Michael Ming. “Our motto is Secure Energy for America.”

Local, state and national energy issues and policies, specifically in regard to hydrocarbons, that evolve and are established greatly affect the current state and future of the organization.

“RPSEA would like to see the support and acknowledgement of fossil fuels needed for our nation’s energy needs today and in the future. We would like to see more funding contributed to research and development of technologies needed both onshore and offshore to advance our nation’s capability of finding and producing the energy we need in a safe and environmentally acceptable manner,” explains Ming.

RPSEA is an affiliate of Consumer Energy Alliance because, Ming says, “CEA is an important ally to RPSEA. Both organizations are focused on securing energy for the citizens of the United States in a safe and environmentally responsible manner, so that the nation depends less on foreign oil and gas. Both accomplish these focuses through a collaboration of energy experts, the public and government, which in turn, is a positive and successful model for future development of energy policy for our nation.”

For more information on the Research Partnership to Secure Energy for America, visit http://www.rpsea.org/.

Getting serious about white roofs

Last week, we included the white roof recommendation in our list if five summertime energy savings tips. It was advice straight from U.S. Energy Secretary Chu, but because Chu initially spoke of the value of white roofs on The Daily Show last year, some people did not take him seriously.

Last week, Chu made clear how serious he was when he directed all Energy Department offices to install white roofs during new construction. Many news sites reporting on the development could not resist the headline, White is the new green. The New York Times noted that the benefits of white roofs go beyond simply reducing cooling costs. They actually can help keep entire cities cooler, by mitigating the “heat island effect,” in which large concentrations of dark, heat absorbent surfaces like asphalt serve to make urban areas hotter than surrounding regions. (No, you weren’t imagining that!)

And if constructing buildings with light roofs seems too simple a solution, or one that should have been considered more seriously years ago, that’s true. It is a simple solution, but it also works. By promoting this kind of low-tech, common sense approach to saving power, Chu is underscoring the importance of the individual steps that we can all take. Yes, many of our future energy savings will come from advanced scientific breakthroughs. Nuy that will not discount the value of the simpler approaches that have been around for centuries.

At times in the past some of those simple energy conservation approaches – such as wearing heavy sweaters indoors during wintertime or keeping car tires properly inflated – have been received with ridicule, as if they were not sufficient to make a meaningful difference. By promoting the decidedly low-tech approach of white roofing, Chu is making clear that every little bit counts, and collectively can make a big difference.

Progress on lifting the drilling ban. Sort of.

The good news is that public opposition to the ban on drilling in the Gulf of Mexico is growing, and becoming more organized. Over the past two weeks, a Bloomberg poll found that a majority of Americans oppose the ban, while more than 11,000 protesters gathered near Lafayette, Louisiana to call for an end to the ban so that people could get back to work. Even an Obama Administration panel looking into the spill has expressed doubt about the merits of a broad drilling moratorium. And Louisiana Senator Mary Landrieu published a letter in the New York Times, outlining how devastating and far-reaching the ban could be:

By shutting down the 33 rigs in the Gulf conducting new deepwater drilling and halting the movement of six more rigs that were coming to the Gulf this summer, the blanket moratorium has effectively laid off as many as 46,000 workers living in 68 percent of U.S. congressional districts. The net effect is like laying off every police officer and firefighter in Mississippi, Alabama and Louisiana.

The not so good news is that the ban is alive and well. Yes, a federal judge overturned an Interior Department moratorium on deepwater drilling in the Gulf more than a month ago. But the Interior Department swiftly responded by issuing a new, vaguer ban said to have the same effect as the first one, but to be harder to reverse in court. And as days become weeks, the impact on an industry so vital to the economic health of the Gulf is becoming more apparent. Permits for both deep and shallow-water exploration declined due to an environment of general uncertainty over future regulations and more idled rigs are leaving the region.

One of the messages that this growing chorus of protestors is making quite well is that this looming economic devastation is not just a local issue, but that every oil job on the Gulf supports many others elsewhere. And, when good-paying jobs disappear, they are often replaced by lower-quality jobs that do not provide nearly the same earnings potential. If, that is, the jobs are replaced at all. But so far, this ill-conceived policy remains in place. Clearly, we still need to do more to rally against it.

CEA to House and Senate Leadership: Legislating in a Vacuum Will Further Jeopardize American Jobs, Energy Security and Economy

As the House and Senate prepare to debate Gulf spill “response” legislation, CEA urges Congress to base legislation on results from investigation into Macondo blowout – not the election calendar

HOUSTON – July 28, 2010   With the House and Senate prepared to debate Gulf spill “response” legislation prior to the August Congressional recess, Consumer Energy Alliance (CEA) president David Holt sent a letter to House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, outlining concerns with the current approach and urging that Congress wait for the results of a full investigation of the Deepwater Horizon incident before moving forward with sweeping legislation such as the bills that will be debated this week – which in their current form would cause additional job losses in Gulf Coast states, reduce domestic oil and natural gas production and hammer the US economy.

Holt issued the following statement after delivering the letter to Speaker Pelosi and Majority Leader Reid:

“The events that occurred on April 20 in the Gulf of Mexico are tragic on many levels – beginning with the loss of 11 men and the pain their families feel to this day. However, the legislation currently being discussed in Congress as a “response” to this tragic accident will do little – if anything – to strengthen the safety of domestic oil and natural gas production.

“By all accounts, the bills now pending in both the House and Senate would significantly limit the ability of the domestic energy exploration and production industry to meet the ever-growing energy needs of the nation – causing additional job loss, threatening American energy security and crippling an already anemic economy. Congress would be well-served to move forward in a careful, deliberative manner in order to ensure that any unintended consequences, as outlined in this letter, do not become a reality.  This nation needs a robust, balanced energy policy that both recognizes the role that oil and natural gas play in meeting more than 90 percent of our current energy demand and works to begin building and diversifying our alternative energy industry over the next several decades.”

A copy of the letter is below and online HERE:

July 28, 2010

The Honorable Nancy Pelosi
Speaker
U.S. House of Representatives
Washington, DC 20515

The Honorable Harry Reid
Majority Leader
United States Senate
Washington, DC 20510

Dear Speaker Pelosi and Majority Leader Reid:

As Congress continues to craft comprehensive energy legislation in the wake of the tragic Gulf of Mexico accident, Consumer Energy Alliance (CEA) is concerned legislation that is designed as a “response” to this incident may further harm American consumers and the communities most impacted by the spill, while jeopardizing our national energy security.

CEA is a nonprofit, nonpartisan organization of more than 140 affiliate members and over 280,000 grassroots supporters that support the thoughtful utilization of energy resources in order to help ensure improved domestic and global energy security and stable prices for consumers.

The Gulf of Mexico is a significant, multi‐use resource that is home to a variety of marine species and provides countless recreational and economic opportunities for the public. CEA believes these systems and uses can coexist as they have for decades without reactive and onerous legislation and new regulations, including the imposition of a moratorium on domestic offshore oil and natural gas activity.

From an energy perspective, Americans rely on the offshore oil and natural gas from the Gulf of Mexico and Alaska each and every day to power our way of life and the economy. At a minimum, American consumers should be able to depend on the federal government for access to the energy resources they own – energy that, if developed sustainably, will continue to create millions of jobs, billions of dollars in local revenue, and the prospect of long‐term energy affordability and security.

While CEA understands and respects the role of Congress to investigate the set of events leading up to and following the Macondo well blowout, a full investigation is warranted prior to enacting legislation to “fix” any possible flaws in the regulation and oversight of the offshore energy industry. In fact, enacting legislation and implementing regulations and policies that restrict or even limit offshore energy production without such an investigation could result in long‐term and harmful unintended consequences for American consumers.

According to a recent analysis by Dr. Joseph Mason of Louisiana State University, approximately $2.1 billion in economic activity will be lost in the Gulf region as a result of the current moratorium. Dr. Mason also contends that inactivity in the region beyond the current 6 month moratorium and well into 2011 could result in 36,000 jobs lost nationally and over 24,000 lost in the Gulf region alone.

To complicate matters further, some countries remain eager to benefit from the uncertainties caused by the Administration’s response to this incident, as deep water drilling rigs leave the Gulf of Mexico.

Meanwhile, Norway is observing the lessons learned from the Gulf of Mexico spill strategy, while continuing to responsibly move forward with offshore drilling plans and a regulatory structure and safety record similar to the United States.

We all must remain mindful of the fact that this incident was the first major blowout and release in the U.S. waters of the Gulf of Mexico– where over 50,000 wells have been drilled since 1947. We agree that one incident and the loss of 11 human lives are one too many. However, we can’t lose sight of the fact that it would be fundamentally irresponsible for Congress to paint the entire industry and every exploratory well with a broad brush based on this incident.

Having both served in Congress following the Exxon‐Valdez accident in 1989, you may recall that Congress moved in a very deliberative manner when crafting the Oil Pollution Act of 1990 (OPA). This legislation, which was introduced prior to the Valdez running ashore, was signed into law a full 15‐months after the fact allowing for Congress to investigate, debate and craft a reasonable solution. It’s also important to note that following the Valdez accident, the federal government did not ban all tanker traffic into the United States. Indeed, this is the model that Congress should adopt in addressing the current accident, while encouraging successful government‐industry partnerships and the development of innovative, effective solutions that aim to ensure we never witness an oil spill of this magnitude again.

As the House and the Senate finalize and consider your respective energy and oil spill response packages, CEA remains hopeful Congress will take into careful consideration the importance of offshore energy production and the vital role that Gulf Coast states and Alaska play in meeting our energy needs. In particular, we encourage Congress to support policies that promote job creation, responsible domestic energy development and production, lower energy prices for American consumers, and reduced dependence on foreign sources of energy.

CEA believes it’s now more important than ever for the federal government to create economic opportunities and incentives for our nation ‐ such as increased use of renewables, new nuclear facilities, more access to abundant supplies of oil and natural gas, and equitable revenue sharing for energy production in the outer continental shelf ‐ ultimately stimulating the economy and fostering greater confidence amongst American consumers, families, seniors and businesses.

The nation should learn from this accident and implement whatever safeguards and processes are needed to ensure that an accident of this magnitude never happens again. Unfortunately, the legislative measures now under consideration in Congress may do little to address the April 20th incident. Instead, the intent behind the bills may force an industry that employs over 9 million Americans and adds over $1 trillion annually to our nation’s economy to shut down.

Thank you for your consideration of our views.

Sincerely,

David Holt
President
Consumer Energy Alliance

Stay Cool, Save Money

As summer temperatures increase, you can save money and energy and still beat the heat by following a few simple tips:

  • Close window blinds and drapes to prevent heat gain from the sun
  • Use a programmable thermostat to regulate home temperature when you’re at home and away
  • Reduce cooling costs by setting your thermostat as high as comfortably possible
  • Don’t set the thermostat to a colder setting than normal to get it cooler quicker – it doesn’t work!
  • Using a ceiling fan and A/C allows you to set your thermostat four degrees higher and still feel as cool
  • Turn off ceiling fans when you leave the room – fans cool people with a breeze, not rooms
  • Use bathroom ventilating fans to remove heat & humidity from your home

To learn more about staying cool this summer while saving energy and money, visit the “Stay Cool, Save Money” section of EnergySavers.gov, a consumer-geared website of the U.S. Department of Energy.

Five ways to lower your power bill

As the summer of 2010 turns into one big long heat wave that never seems to break, consumers are finding themselves more worried than ever about their home cooling and other energy bills. They are also feeling particularly powerless (no pun intended) to do anything about it: Reasonable people may debate the need for air conditioning when it’s a toasty 86 degrees. Not so much when the temperature remains in the triple digits even after the sun has set.

But even during the hottest summer on record, there are things you can do to lower your power bills. Some will pay off immediately and some will provide a return on investment in years to come. Some are tips that are timeless, but sometimes forgotten. And some are newer approaches to saving costs that you may not have heard about. As we await what is typically the hottest month of the summer, we thought they were all worth passing on.

  1. Think about peak demand. We all know that the more power we use, the more we spend. But many of us fail to realize that electric companies charge more during times of peak demand. How much more? A lot.  According to some informed estimates, 10% to 20% of overall electricity costs in the U.S. come from the top 100 hours of demand. Turn the lights on at those times of day and you’ll pay first-class rates for what feels like coach service. It’s not really that hard to determine peak usage times. They are when you and everyone else need the most power. Think of the hot summer day around dinner time when the air conditioner is running, the family is returning home from school and work and errands need to be done. You may not want to sacrifice a cool home entirely at such times, but with a little planning, you could easily delay the laundry, the cooking and other energy sucking errands. Better yet, plan to be out of the house at times when everyone else is parked in front of the A.C.
  2. Reconsider solar. If you are like most people, you like the idea of having a solar panel on your roof to defray the costs of traditional power, but you think you can’t afford the upfront investment, or worry that the equipment will not pay for itself in your lifetime. In parts of California, a new Solar Affordable Housing Program is bringing solar power to low- and middle-income households that don’t have money to spare. The program relies on solar incentives, grants, donations and corporate sponsors to cover equipment costs and it provides volunteers to help with the installation. If you don’t live in a region covered by this program (there are other similar ones throughout the country) you should still consider solar panels, which in recent years have seen significant price reductions.
  3. And speaking of roof tops, the simple step of painting your roof white can produce significant power savings. This tip comes straight from Energy Secretary Steven Chu and it’s a basic fact that people who dwell in warm climates have understood for centuries. When you paint a roof or an entire house white, it absorbs a lot less heat. When Energy Secretary Chu delivered this tip to viewers of Comedy Central last year, he said that if the world could somehow manage to turn all its roofs white within 20 years, it would save about 24 billion metric tons of carbon dioxide emissions, or the same amount the entire world emitted last year. One disclaimer: If you live in a region that gets quite cold in the winter, you may want to stick with your dark roof, which can keep homes warmer during cold sunny days.
  4. Don’t be penny wise/pound foolish. Keeping the car windows down in lieu of turning on the air conditioner can make sense sometimes, but not when you’re driving down the highway at 65 miles per hour. That just creates drag on the car, eating more gasoline. Likewise, while driving a longer distance to get cheaper gasoline may make sense if you know of a place that offers a large discount, it’s less likely to get you ahead at all if you’re talking pennies. In all of your energy purchasing decisions, try to getting caught up on small incremental savings that may cost you a lot of time and discomfort, and keep your eye on the changes that will save you consistently over the long term.
  5. Unplug. Yes, we did just say that some days are so hot that air conditioning is non-negotiable. But that doesn’t mean you have to sit in an air conditioned home with separate televisions and multiple computers running throughout the house, and the lights on in other unoccupied rooms. Sometimes it takes an outright power outage to remind you of some of the little ways you can painlessly reduce your power use. Turn off the television and read a book. Turn off the lights and go to bed an hour early. Sit on the porch and catch the evening breeze. Kick back with a drink and observe the stars. Or camp out with the whole family in the backyard, and remember the simple pleasures of getting away from it all, where the only sound is the crickets.

One more reason we need to be less dependent on foreign energy

We all suspected this would happen sooner or later, but it was nonetheless received as a milestone of historic significance this week when China surpassed the U.S. to become the world’s largest consumer of energy. This reverses 100 years of the United States as the world’s energy consumer and in many ways it is good news. Considering that China has about four times as many people as the United States, it should be consuming more power.

The not-so-good news is that this shift is not a result of conservation on the part of consumers so much as it reflects the impact of the economic downturn in the United States. The International Energy Agency, which reported the new data on world energy consumption, said that the average American consumer still uses significantly more energy than his Chinese counterparts, but that the surge in overall power consumption in China reflects mass industrialization there and the comparable slowdown in manufacturing activity here.

But a bigger concern has to do with supply. As the world’s top energy consumer, the U.S. had to make sure it had enough energy to satisfy that demand. Along with cobbling together a host of traditional and alternative energy sources produced here at home, we’ve long had to tap overseas sources of oil. Now, that another country has become the world’s biggest consumer of oil, we are reminded that we are competing for a limited supply of world oil. By now we all should be well aware of the economic and the national security dangers risks of being too dependent on foreign oil. But a potentially bigger risk would be losing access to some of that worldwide supply that we’ve always depended on. Of course, the way to mitigate that risk is to bolster our domestic supplies.

The fact that the typical Chinese consumers are not yet a major factor in the country’s increase should offer some sense for how much demand outside of the U.S. still stands to grow. In fact, this week’s rise in oil prices is being attributed to the news of China’s increased consumption. “The market is growing concerned about the future supply of oil,” said one analyst.

You pay how much for air conditioning?

Imagine a system of travel where you had no idea of the cost until the trip was over and you were back at home, waiting for a bill in the mail. You’d drive cross-country and stop periodically to fill up the tank, without any signs posting the cost per gallon. Or, you’d show up at the airport and get on the next available flight, not knowing if you were paying a first class fare or a Priceline discount.

Of course, it sounds ludicrous. But that’s exactly the system consumers deal with every month when paying their home power bills. We all have some sort of vague sense that our bills will be higher during certain peak summer and winter months. But we rarely track our actual usage in any reliable way, like kilowatt-hours. Even if we do, there’s still that wildcard of so-called peak demand periods, when unit costs spike along with usage.

CEA recently highlighted the rise in smart meters, a long-overdue technology that would take a lot of the guesswork out of measuring home power costs. Now, with record high temperatures sweeping the country and power costs on everyone’s mind, we wondered if most people have any idea how much of a premium they pay for power during peak demand periods, like heat waves.

According to some studies, power consumed in peak periods costs close to three times as it does in off-peak times. But because we almost never know the precise price we are paying at any given time, we are unable to make informed choices about turning the thermostat up or down.

A recent NPR story illustrated just how variable our power costs can be when a guest explained that 10% to 20% of the overall electricity costs in the U.S. come from the top 100 hours of demand. In the same way that a small portion of first-class business travelers booking travel at the last minute pay substantially more than their coach counterparts, power customers pay a lot, lot more if they wish to dry their hair, or cook dinner, or simply cool the house down during peak demand periods. The only difference being that the power customers don’t even know how much they are paying until the bill arrives in the mail at the end of the month. (And they don’t get a complimentary cocktail.)

A number of high-tech startups have been working on systems that would deliver consumers the information they need to make informed decisions about plugging in so-to speak. One of them, eMeter, recently chose what felt like the hottest day of the year to announce it had secured venture capital funding to expand its business. The company makes smart meters to deliver more information about consumption and costs directly to consumers and has even briefed President Obama on its home energy management technology.

While individual consumers who use this kind of up-and-coming technology stand to achieve major savings, it’s important to note that even when just a small portion of consumers become more vigilant about when they use power, everybody wins. Studies show that even small reductions of 10% or less in peak power consumption would eliminate tens of billions of dollars of power generation costs.

CEA to Interior: Lift Moratorium, Create Real Jobs, Economic Growth

Nat’l consumer group calls on the Administration to listen to the American people, reverse course on job-killing moratorium

HOUSTON – July 19, 2010   In a statement earlier today announcing a series of public forums focused on domestic offshore energy production, Michael Bromwich – chief of the Interior Department’s bureau of Ocean Energy Management, Regulation, and Enforcement’s (BOEM) – said “We need to know that industry got the message” in reference to the Deepwater Horizon incident.

Consumer Energy Alliance (CEA) president David Holt issued this statement in response to Mr. Bromwich’s comments:

“American energy consumers – especially those along the Gulf Coast – get the message loud and clear that the Administration’s offshore drilling moratorium is leading to higher unemployment, a crippled economy and less stable supplies of affordable energy, as rigs continues to leave our waters to operate overseas.

“Despite being overturned by a federal court, this Administration continues to unnecessarily keep critical supplies of homegrown oil and natural gas off-limits that can be safely leveraged into good-paying jobs and affordable energy for struggling American families, seniors and small businesses.

“Consumers in the Gulf ‘get the message’ how economically devastating the president’s ban on offshore energy development is. And thankfully, they have dogged and tireless allies in Senators Mary Landrieu and David Vitter, as well as many others, who understand that the Obama moratorium ‘could cost more jobs than the spill itself.’

“CEA strongly urges all concerned consumers, citizens and stakeholders to attend these upcoming meetings throughout August, and to continue to send Washington the message that more effective, safe and responsible domestic energy production, coupled with commonsense conservation measures, is vital to our nation’s energy security.”

NOTE: According the Interior Department, “Meetings are currently being scheduled to occur in August in the following cities: New Orleans, LA, Lafayette, LA, Mobile, AL, Pensacola, FL, Santa Barbara, CA, and Anchorage, AK.  Meetings will be held in early September in the following cities: Biloxi, MS and Houston, TX.”

Guaranteeing a secure energy future

Earlier this year, President Obama announced an $8 billion loan guarantee for the construction of a new nuclear power plant in Georgia, stating that “investing in nuclear energy remains a necessary step.” The President also included an additional $36 billion for new loan guarantees in his FY 2011 budget request.

It is hard to overstate the value of this sort of guarantee, which essentially makes the high-cost construction of nuclear power plants possible. The planned Southern Co. power plant that was the recipient of the guarantee announced back in February is the country’s first new nuclear power project in almost 30 years.

Earlier this month, the House of Representatives included $9 billion in additional loan guarantees in a supplemental spending bill for 2010 that could enable construction on additional new nuclear plants to go forward sooner. The $9 billion increase in guarantees for 2010 would be derived by accelerating access to a portion of the $36 billion President Obama requested as part of his budget for 2011.

While CEA applauds the recognition of nuclear power as a key component of a secure energy policy by both the Obama Administration and Congress – and the recognition that continued financial support of the industry through these sort of loan guarantees is key to getting new nuclear projects off the ground and seeing them through to a timely completion – the passage of the loan guarantee package in the House supplemental bill is only a first step.

By far, the largest component of nuclear power costs is the steep upfront expense of constructing the plant. The Nuclear Energy Institute says that loan guarantees are critical to project financing because the financing capability of the typical electric company is relatively small. It also stresses that these loan guarantees are not grants or subsidies; recipients are required to repay the loan in full.

But when a project has this kind of backing, it provides assurance to contractors, workers and other investors that it is not going to run out of money halfway through. That sense of confidence helps construction proceed smoothly and without delays.

And ultimately, consumers win. Because it is so costly to construct a nuclear power plant, anything that helps speed the construction process along will help to contain costs. In a highly competitive industry where so many alternative power sources are too expensive to be widely adopted, cost containment can make the difference between a niche power source and a mainstream one.

In order to unleash all of the positive economic and environmental benefits of new nuclear construction, Consumer Energy Alliance urges Congress to fully support the $36 billion for nuclear loan guarantees in President Obama’s FY 2011 budget request and to support the accelerated access of $9 billion in loan guarantees for this year. We can no longer afford to delay expansion of nuclear energy.