American Gas Association Joins Industry and Energy Sector Leaders in Promotion of New National Action Plan for Energy Efficiency

Plan Could Save US Energy Consumers Hundreds of Billions of Dollars

Washington, D.C. – Savings of hundreds of billions of dollars during the next 10 to 15 years could be available to U.S. energy consumers as the result of the adoption today of a new National Action Plan for Energy Efficiency.  More than 50 U.S. energy and industrial companies have signed on to support the plan and its objectives.
 
David N. Parker, president and CEO of the American Gas Association (AGA) said, “AGA is pleased to be a supporter of the Plan.  Our 197 members serve more than 56 millionnatural gas consumers and know the importance of effective energy efficiency policies.  This Plan has the potential to positively impact the energy consumption habits of every American, and we are pleased to take part in its adoption and promotion.”
 
AGA noted the Plan holds the promise to defer the need for 40 new 500 Megawatt-power plants, avoid greenhouse gas emissions equivalent to approximately 35 million vehicles, lower the costs of air pollution controls and reduce prices for natural gas.  
 
The Plan’s recommendations include: making energy efficiency a high priority resource; aligning utility incentives and ratemaking processes to promote investments in efficiency; promoting long-term, stable program funding to deliver cost-effective efficiency to consumers; and broadly communicating the benefits of efficiency.  These recommendations build upon successful efficiency programs already operating in many areas and remove barriers that have limited utilities and customers from pursuing cost-effective energy efficiency resources.  
 
Two of the many AGA member companies that already offer energy efficiency programs, Vermont Gas Systems and KeySpan in Massachusetts, were highlighted in the Plan.  The Plan also described the Integrated Resource Planning model for energy efficiency and conservation that is used by Minnesota members CenterPoint Energy and Xcel Energy.  
 
Particularly noteworthy, said AGA, is the Plan’s recommendation to align utility incentives with the delivery of cost-effective energy efficiency programs.  The Plan, in further support of energy efficiency, encourages states to modify utility ratemaking practices in order to promote investments in energy efficiency technologies. 
 
In a 2004 Joint Statement, AGA, the Natural Resources Defense Council, the Alliance to Save Energy and the American Council for an Energy-Efficient Economy urged state Public Utility Commissions to consider innovative programs that encourage increased total energy efficiency and conservation in ways that align the interests of state regulators, natural gas utility company customers, utility shareholders, and other stakeholders. The Plan recognizes that historically regulatory policies governing utilities have more commonly compensated utilities for selling energy rather than using energy more wisely. 
 
AGA members who have implemented energy efficiency programs similar to ones described in the plan include NW Natural Gas in Oregon, Baltimore Gas and Electric and Washington Gas in Maryland, Southwest Gas in California, Piedmont Natural Gas in North Carolina and Cascade Natural Gas Corporation in Washington. Other AGA member companies have filed for permission to adopt such plans in additional states.  
 
The National Action Plan brings together leading energy sector organizations representing different stakeholder perspectives to determine how best to promote greater investment in energy efficiency by the customers of electric and gas utilities.  This collaborative approach is essential as greater investment in energy efficiency requires a concerted effort by customers, utilities, regulators, states, and other stakeholders.

The recommendations in the Plan provide support for the pending energy efficiency proposals of several AGA member companies.  AGA member company Action Plan Participants include: Baltimore Gas and Electric, Duke Energy, Entergy, Exelon, New Jersey Natural Gas, Pacific Gas and Electric, PNM Resources, Vectren Corporation, and Xcel Energy.  
 
For more information on the National Action Plan for Energy Efficiency, visit: www.epa.gov/cleanenergy/eeactionplan.htm