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Energy Efficiency
Natural gas homes are among the most energy efficient, which can mean savings for customers and the environment.
Energy efficiency and conservation programs are a key component in reducing greenhouse gas emissions and helping consumers manage their energy bills. AGA members have demonstrated a commitment to investing in energy efficiency and to delivering savings to consumers through programs that actively promote cost-effective and prudent approach to energy efficiency.
Natural Gas End Use: The Energy Efficiency and GHG Reduction Story - Natural gas utilities and their customers have done today what others have said can not be done - continuing to grow sutainable businesses that contribute to our economy WHILE helping to diminish the effect of energy use on the environment and consumers' budgets. While the number of residential customers has increased by 27 million - or 71% - since 1970, the average natural gas residential customer today uses 39% less natural gas than they did 38 years ago. This translates directly into reduced greenhouse gas (GHG) emissions. To learn more about how natural gas is leading the way to a new energy economy visit: Natural Gas Utilities and their Customers. Efficient. Naturally.
Energy-Saving Resources for Natural Gas Consumers and the Benefits of Direct Use - The average American home uses one third less natural gas than three decades ago. Utility energy efficiency programs have been an important driver in this reduction in per-capita natural gas use. A number of natural gas utilities implement programs that allow consumers to reduce energy consumption with more efficient appliances and tighter building envelopes. In replacing equipment with efficient natural gas appliances, consumers can save energy, lower utility payments, and contribute toward cleaner air and a sustainable environment by reducing emissions of air-polluting compounds and greenhouse gases.
Regulatory Incentives for Utilities to Promote Energy Efficiency - AGA continues to support movement toward regulation that allows innovative rate designs to help natural gas utilities in their conservation energy efficiency (EE) efforts. Traditional rate structures serve as disincentives for utilities to provide energy-saving products and services, since the allowed rate of return is calculated based on the amount of gas delivered to consumers. Thus any effort to reduce natural gas consumption would hinder utilities ability to recoup invested fixed costs. "Decoupling" of utility revenues from natural gas sales is one method of removing such EE market impediments. Other regulatory incentives that would empower utilities to provide energy efficiency (EE) programs include non-volumetric and other innovate rate designs; recovery of EE program-related costs; recovery of revenue and margin losses associated with implementing EE programs; and performance-based incentives for utility shareholders and/or ratepayers that attain specific success metrics (such as predefined energy savings and/or cost efficiency targets).
Measuring Energy Efficiency: Full Fuel Cycle Analysis - Current trends indicate that natural gas utilities will soon operate in a carbon-constrained economy that will make it necessary to measure the carbon footprint of energy consumers to demonstrate improvements in energy efficiency. Measuring energy intensity on a full fuel cycle, or "source" basis, leads to a more accurate reflection of environmental impact. For more information on source measure of energy consumption, please visit: The Importance of Source Energy and Energy Efficiency.
Just Released: AGA and NRDC Join Forces to Promote Full-Fuel-Cycle Measurement for Energy Efficiency Standards
The American Gas Association (AGA) has released a joint statement with the Natural Resources Defense Council (NRDC) supporting the recommendations of the National Academies that the Department of Energy (DOE) move toward the use of a “full-fuel-cycle” measurement of energy consumption for assessment of national and environmental impacts, especially levels of greenhouse gas emissions. Read the full text of the statement here.
AGA Letter to CEQ Urging Inclusion of Source Energy in Executive Order - Sept. 4, 2009
Study by National Academies confirms that full fuel cycle measurement is the best method to set energy efficiency standards
On May 27, 2009, the National Academies recognized the importance of measuring efficency by this method, in its report to Congress, “Review of Site (Point-of-Use) and Full-Fuel-Cycle Measurement Approaches to DOE/EERE Building Appliance Energy Efficiency Standards.” The highly esteemed National Academies (NA) comprises the National Academy of Sciences, the National Academy of Engineering, the Institute of Medicine and the National Research Council.
The report found that the Department of Energy (DOE) should consider changing its measurement of appliance energy efficiency to one based on the full-fuel-cycle, which takes into account the amount of energy produced and lost from the point of production to the final point of use. This more accurate measurement would provide consumers with more complete information on energy use and environmental impacts. Read the full report.
Help for Low-Income Customers - As energy and other commodity prices rise, low-income customers will continue to be the hardest hit. AGA members have taken the lead in advocating increased funding for Low Income Energy Assistance Program (LIHEAP) as the most direct means to assist those in need meet their basic energy needs. LIHEAP is a federal block grant program that provides financial assistance to low- and fixed-income individuals for fuel and utility bills and for low-cost weatherization and energy-related home repairs. More than half of LIHEAP beneficiaries use natural gas heat, and more than eighty percent of AGA members administer energy efficiency and weatherization programs directed at low-income residential customers. In addition, natural gas utilities deliver programs that assist low-income customers with bill payments, utilizing LIHEAP funds as well as ratepayer and/or shareholder funds. Learn more about AGA support for LIHEAP and how it helps low-income customers.
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