Utility plans exclude conservation

Utilities want more plants to meet demands. Some say conservation efforts could delay need

The state's largest utilities say they'll need to spend more than $10 billion on three new nuclear reactors and two coal-burning plants to meet projected electricity demand within a decade.

But environmental groups say the utilities' forecasts leave out two key factors: conservation and alternative energy sources. Adding those to the mix could delay the need for new plants, they say.

Energy efficiency, a popular idea during the 1970s when high fuel prices ruled, is back in fashion just like bell-bottoms. Conserving electricity not only helps people cut power bills but also reduces pollution from power plants. Concerns that coal plants contribute to greenhouse gases and higher costs of fuel have driven the resurgence in conservation programs.

Last year, the Georgia Utilities Commission required Georgia Power to offer four programs to help residential customers save energy. In January, the California Public Utilities Commission created a 10-year solar initiative to help bring down the costs of solar electricity for customers.

The latest stop for the debate is North Carolina. At the first of three planned public hearings this month and next, dozens of people urged the state Utilities Commission to require power companies to take into account conservation measures.

Less is more

The question is important because the need for new power plants is based on the utilities' 10-year forecasts of demand. Both Progress Energy and Duke Power say they will need new plants within a decade. Progress serves central and Eastern North Carolina, including Raleigh, and western areas around Asheville. Duke serves central and Western North Carolina, including Durham.

"Utilities should be focused on helping customers use as little electricity as possible and do this in a meaningful way," said Bob Rodriguez of Raleigh, a manufacturing salesman of wireless testing equipment, who is working to cut his family's usage.

After getting a home energy audit, Rodriguez sealed leaking ducts in the air-handling system, added insulation in the attic and crawl space, and replaced most light bulbs with compact fluorescent lights, which use less energy. The changes helped Rodriguez cut his monthly power bill by 23 percent in the past six months.

Energy efficiency has become a selling point for new houses. That has created a niche for businesses that specialize in making sure houses and businesses don't run up high power bills.

Five years ago, Bob Kingery founded Southern Energy Management, one of several companies in the Triangle that performs energy audits and certifies new houses as energy-efficient. Kingery's company also installs solar water heaters and solar backup electrical systems. Kingery's company charges $450 to $850 depending on home size for a half-day audit.

"Customers are demanding energy efficiency as energy hits their pocketbooks more," Kingery said. "The price of fuel and price of energy seems to be the main driver."

Kingery said homeowners typically can reduce their monthly power bills by 15 percent to 25 percent by addressing problems such as leaking duct work. Most can recoup their costs for modifications to the house in two to eight years.

It's the kind of approach that many argue the utilities should encourage. But power company officials say that conservation, while curbing demand, won't relieve the need for new plants.

Progress Energy predicts that demand for electricity will increase by 18 percent within 10 years.

That equates to about 2,100 more megawatts -- roughly the output of two nuclear plants or two and a half coal-burning units. Duke Power's projections are higher.