Public Policy

CASE STUDIES 3 of 3

Setting the Stage for Policy Promoting Energy Efficiency

Landmark Study Still Relevant 20 Years Later

Client: Massachusetts Department of Public Utilities
Location: Massachusetts

Challenge/Business Need:

From its earliest days, CSG leaders recognized that simply building more power plants was not the solution for New England’s increased energy consumption. Steve Cowell, current CEO of CSG, as well as other community leaders, believed that promoting energy efficiency measures would better position the region to manage growth and make energy more affordable for consumers.

In 1987, CSG partnered with the New England Energy Policy Council and the Conservation Law Foundation to author Power to Spare: A Plan for Increasing New England’s Competitiveness Through Energy Efficiency. The groundbreaking study documented the feasibility of using energy efficiency as an alternative to building new power plants in the region.

CSG’s ROLE

CSG provided seed funding to help commission Power to Spare, as well as the leadership to ensure the study addressed the fundamental question of whether efficiency improvements could make enough of an impact to render construction of a new power plant unnecessary.

Strategy & goals

Power to Spare noted that New England’s electric rates were 25 percent higher than other regions of the country. Authors argued that continued investments in large central power stations would only drive rates up. The report concluded that inevitable population growth coupled with the unpredictable nature of fossil fuel prices and interest rates made reliance on new power plants ill-advised.

The document made the case that a better strategy would be the following:

• Design and build more energy efficient buildings
  
• Promote more efficient lighting
  
• Lower industry consumption through improved technology
  
• Improve insulation in residential homes

The report was backed by sound and convincing data, enabling CSG and its affiliates to successfully promote energy efficiency legislation.

Impact

Power to Spare has had a deep and wide impact on the energy industry in New England and around the country. Many lasting affiliations were formed as a result of the study, enabling CSG and the organization to further influence policy initiatives and energy legislation across the country.

Armed with Power to Spare, the Conservation Law Foundation intervened in utility proceedings and convinced regulators to require utilities to invest in end-use efficiency. This led to a strong coalition of stakeholders who worked out the regulatory and implementation details of the Social Benefit Charge, a small ratepayer fee on a customer’s utility bill that provides the necessary incentives for utilities to deliver energy efficiency programs and services.

Over the years, the study has been cited in many policy and legislative debates and remains, more than 20 years later, a relevant document in demonstrating the economic and social benefits of investment in energy efficiency measures.

CSG Contacts

Steve Cowell, CEO