ISSUE BRIEF: Promoting Energy Conservation and Efficiency
Markets, not mandates, will drive these programs best
The Issue:
As energy demands increase in the United States, conservation and energy efficiency programs are important tools in helping to close the gap. We need both aggressive demand-side efforts and a strong push to expand available supply sources. Thus, construction of new generation sources and enhancement of energy infrastructure also must play key roles.
Energy providers need to have the flexibility to choose the combination of programs that best meet their customers' needs and not be mandated to use specific fuel sources or demand-side programs. A market-driven energy sector will develop a solution much more effectively and efficiently than government will.
Impacts on the West:
In order to ensure system reliability and minimize rate impacts to customers, conservation and energy efficiency programs need to be flexible for energy providers to implement. One program may work well for a certain utility, but not for another. Innovations through operations and technology will be developed more quickly under a market-driven scenario. By mandating that all providers use certain programs, this flexibility and innovation is lost.
Status of the Issue:
The 110th Congress plans to move on an energy package sometime in 2007. The emphasis is likely to be strongly focused on energy efficiency, conservation and renewable energy programs. There will undoubtedly be attempts made, as part of that process, to add mandated programs.
Solutions:
- When considering energy conservation and efficiency programs, Congress should support those programs through incentives, not mandates.
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