CITIZEN POWER ALLIANCE

As part of its historic energy efficiency initiative, the New York State Public Service Commission has agreed to set aside up to $27 million that would be given to electric utilities as an incentive to develop cost-effective programs designed to assist consumers in improving energy efficiency and reduce anticipated increases in consumer electricity bills.

“The unprecedented rise in energy prices we have seen in recent months is a call-to-action for utilities to find ways to improve energy efficiency and reduce energy consumption,” said Commission Chairman Garry Brown. “By creating these utility incentives, the Commission is providing a valuable incentive for utilities to find ways to improve energy efficiency, which is the most cost-effective, and most immediate, way to reduce the burden of rising energy and environmental costs on residential and business customers.”

Chairman Brown added: “Incentives are valuable in securing a long-term commitment by utilities to achieving efficiency goals. The Commission has established energy efficiency as a high priority, due to the benefits that it provides related to customer bills, system reliability, environmental impacts, energy security, and economic development. For that reason, incentives are warranted if they increase the likelihood of achieving our efficiency goals in a cost-effective manner. This new policy — taking the carrot and stick approach — holds utilities accountable to meet targets.”

The utility incentives that are being provided are part of an overall energy efficiency proceeding designed to forestall an expected rise in energy consumption. At current trends, by 2015 electric energy usage in New York is estimated to be 11 percent higher than current levels. These factors, combined with expected fuel price increases and supply uncertainty, and the need to reduce greenhouse gas emissions, make it necessary to create energy efficiency programs and quickly find ways to reduce energy use.

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