Alliance Endorses AGA, NRDC Joint Statement Supporting Utility Incentives to Promote Energy Efficiency | Alliance to Save Energy

Alliance Endorses AGA, NRDC Joint Statement Supporting Utility Incentives to Promote Energy Efficiency

Release Date: Monday, May 5, 2008

Washington, D.C., May 22, 2008 – The Alliance to Save Energy today applauded the American Gas Association (AGA) and the Natural Resources Defense Council (NRDC) for encouraging state public utility commissions to promote energy efficiency in ways that will benefit consumers without harming utilities’ bottom lines.

“AGA and NRDC are to be commended for making a commitment to promote cost-effective energy-efficiency programs that will benefit both utilities and ratepayers,” said Alliance President Kateri Callahan.

AGA and NRDC are issuing a joint statement identifying significant regulatory barriers to achieving energy efficiency in the natural gas arena and recommending steps for achieving “win-win” solutions for natural gas utilities and their customers. An earlier joint statement issued by AGA and NRDC in 2004 had noted that utility profits usually suffer when customers use less fuel, because recovery of fixed costs is reduced in proportion to the reduction of sales.

Today’s joint statement reiterates the call for utilities to actively support energy-efficiency proposals ensuring that utilities can recover their authorized fixed costs when customers reduce their fuel use and costs by being more energy efficient. It also recognizes that increased energy efficiency reduces the nation’s carbon footprint.

“Energy efficiency is the quickest, cheapest, cleanest way to extend our nation’s energy resources while protecting the environment and our national energy security,” Callahan observed. “Today’s AGA-NRDC joint agreement goes far in recognizing that reality and in helping consumers and our nation as a whole reap the benefits of energy efficiency.”