Energy Buzz

Energy Efficiency

Annual Cost to Opperate CF Bulbs Vs. Incandescent

Based upon research aggregated at Georgia Tech, the following trends in energy prices and productivity occured between 2005 and 2007.

The U.S. is using less energy today per dollar of economic activity* than at any time in modern history. So why are electricity prices rising? The answers are numerous:

  • China, India, and even Europe are consuming more coal for power production and steel mills, pushing coal prices up;
  • The threat of tighter environmental regulations such as carbon caps in the U.S. has caused producers to invest in costly pollution abatement equipment;
  • Transportation bottlenecks are inhibiting the ability of U.S. and global coal suppliers to respond.

While the official electricity price forecasts produced by the Energy Information Administration predicts no rise in electricity prices over the next 25 years, many experts foresee significantly rising electricity prices. Several examples already point to this trend: Portland General Electric Company in Oregon is seeking a 9 percent rate increase; American Electric plans 15 percent electric rate increases in parts of coal-dependent West Virginia; Potomac Edison is seeking a 29 percent increase from Virginia regulators; and Baltimore Gas & Electric increased its energy costs nearly 70 percent last year.

(*Per dollar of Gross Domestic Product)

Energy Efficiency Indicators — 2007/2005
Indicator 2007 2005 Percent Increase/Decrease
Energy Intensity (thousand Btu per $2007 GDP) 7.20 7.60 Percent Decrease: 5.3%
Energy Use Per Capita (Billion Btu) 25.8 25.3 Percent Increase: 0.2%

All financial metrics are in $2007.

Energy Insights from Policy Expert Marilyn Brown

Energy Efficiency — the Best Way to Cope with Summer Heat and Rising Prices

Marilyn Brown

Marilyn Brown
Professor, School of Public Policy
Georgia Institute of Technology

As the summer season approaches, many Americans worry about the cost of staying cool. While electricity rates have not experienced the meteoric rise of oil prices, they have been steadily increasing. Over the past two years, residential electricity rates have increased 6 percent above and beyond the rate of inflation. The era of cheap energy has ended — and energy efficiency is a valuable "front-line" strategy against rising energy prices and global climate change. A quick look around the typical American home reveals some surprising facts about energy inefficiencies that help to pad the electric bill over the warm summer months.

Consumers have a growing appetite for new products and devices. A recent study by the Electric Power Research Institute highlights the move of consumers from 27-inch standard televisions at 100 watts toward 42-inch plasma TVs that require 250 watts — a two-and-a-half-fold increase. To save electricity, an LCD TV is a better choice (my 48-inch LCD flat screen TV draws just 150 watts). But don’t forget the set top box; one of these consumes nearly half the energy of a new refrigerator and costs $20 - $30 to keep running for a year, whether your TV is on or off.

Incandescent lighting is another energy hog. An 18-watt compact fluorescent bulb can produce as much light as a 75-watt incandescent, and if it is on for 4 hours a day, it costs only $2.80 to operate for an entire year (at nationally average electricity rates) compared with $11.65 per year for an incandescent. But because incandescents are cheap to purchase (perhaps 50 cents a bulb), consumers think they're saving money by not spending $2.00 for a compact fluorescent. In reality, replacing incandescents with compact fluorescents is one of the best investments a consumer can make.

A key to cutting back on air conditioning costs is to use a smart, programmable thermostat so that air conditioners only operate when needed. By offering multiple programmable temperature settings, these devices save energy while you're out of your house or sleeping. Compared to manually manipulating your thermostat (or not changing it at all), programmable thermostats usually pay for themselves within a year by saving you at least as much as they cost.

While consumers recognize that summer months bring smog alerts and air quality advisories, few realize that their air conditioners and appliances are a major cause of this. The impact of electric power production on air pollution was made clear by the 2003 Northeast blackout, which shut off electricity for 50 million people. Twenty-four hours after the blackout, SO2 concentrations in New York City dropped 90 percent and ozone concentrations were cut in half.

May is the perfect time to "summerize" our homes with ceiling fans, compact fluorescent light bulbs, smart thermostats, and power strips to turn off unnecessary plug loads. The U.S. Environmental Protection Agency estimates that if every household were to replace its appliances with Energy Star equipment, they could cut their electricity bills by 30 percent. Investments in energy efficiency can save consumers money while reducing pollution and stretching our energy resources. If the nation were to embrace energy efficiency with a vengeance, we could all save money, breathe better, and avert global climate change.

Electricity Reliability

Natural gas price for electric power ($/MBtu) average
2007 2005
7.22 8.72
Percent Decrease: 17.2%

Oil
Security

Price of Oil ($ per Barrel)
2007 2005
$68* $53
Percent Decrease: 27.7%

*According to AAA’s “Daily Fuel Gauge Report,” regular gasoline currently costs $3.95, up 23% from $3.20 a year ago.

Environmental Quality

CO2 emissions from energy consumption (billion tonnes)
2007 2005
5.98 5.96
Percent Increase: 0.3%

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