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Fri, May 27

Will Energy Efficiency Stabilize the Cost of Generation?

Inflation concerns continue.  The pandemic, interrupted supply chains and a war, carry much of the blame.  According to U.S. Labor Department, the annual inflation rate for the United States has doubled, from 4.7 percent in 2021 to 8.3 percent for 2022.  The price of electricity generation is also rising across the country and energy efficiency could become the only relief.  “With the significant price increases that are expected within the utility industry in the near future, it is important for us to be proactive in our efforts to lessen the effect rising utility costs will have on our facilities and our bottom line,” said Curt Topper, Secretary of the Pennsylvania Department of General Services (DGS).

In an effort to lead by example, the DGS broke ground on a $22 million project that will increase the energy efficiency of 17 buildings in and around the Capitol Complex.  The project will include a new geothermal system that will use the consistent temperature of the water below ground and an air-handling system to provide more energy efficiency heating and cooling to the complex.  

“Energy efficiency improvements are one of the most effective and proven ways to reduce energy consumption,” said Secretary Curt Topper.   As temperatures climb, utilities strive to communicate the importance of energy conservation to customers.   The Pennsylvania Public Utility Commission (PUC) is already warning consumers that, beginning June 1, utilities will be increasing their prices for electricity generation by as much as 45 percent.   “The upcoming price changes, combined with the increased use of electricity typically seen during the long, hot days of summer, make this a very good time for consumers to evaluate their energy options,” the PUC said in a statement.  Pennsylvanians can shop and compare between utility companies, Citizens’ Electric, Met-Ed, Penelec, Penn Power, PPL, Wellsboro Electric, and West Penn Power. 

Changing consumer behavior could have greater results than implementing energy efficient systems.  Deliotte researchers analyzed customer energy behavior over 10 years and found that ‘electricity providers can influence behavioral energy efficiency by understanding the motivations of certain consumers.’  Now is the time  to encourage consumers to take action, reduce energy usage and increase energy efficiency measures.  How is your utility influencing customer behavior?