Before our utilities ask us to invest in them, they need to invest in us. Improvements to our homes and businesses help us lower our bills AND help utilities lower their costs. It’s a win-win.
Energy Efficiency
The cheapest and easiest way to meet our energy needs and to lower our bills is through investments in energy efficiency. Unfortunately, our utilities aren’t taking energy efficiency seriously. That’s why first and foremost we advocate for energy efficiency.
Utilities could be putting money into programs that help us make our homes and businesses more efficient and offering financing options that allow low- and moderate-income families access upgrades to make our homes safer and more comfortable.
Largely called, Demand-Side Management, within the utility world, energy efficiency programs that happen either at our homes and businesses or at the utility-scale. This includes things like programs that help people get energy audits to identify where air is leaking from their homes, incentives for improved appliances and home upgrades, and using new technology, like Virtual Power Plants, to help.
Energy efficiency is the cheapest and best investment
So why aren’t our utilities doing more?
Investor-owned utilities (LG&E, KU, KY Power, Duke) aren’t investing in energy efficiency or demand-side management because they don’t want to lower our bills or avoid the need to build expensive new power plants. As investor-owned utilities they’re main job is to make money for their shareholders and they do that through selling more electricity and a guaranteed return on investments in new infrastructure. That’s why we need the Public Service Commission (who regulates investor-owned utilities) to demand that they do the right thing and prioritize efficiency.
When it comes to our Rural Electric Cooperatives and Municipally-Owned utilities the answer is less straight-forward. It’s not clear to us why these utilities are so hesitant to make investments in lowering our bills by choosing the lowest cost option to meet our energy needs. One thing is clear. Energy efficiency and technologies that allow us to use our resources smarter are the future that our energy system (and wallets) need.
Energy Efficiency at Home
When our homes aren’t properly sealed and insulated, it’s like trying to heat a cheese grater. You’re not just leaking air, you’re leaking money.
There are lots of ways to lower your electric bills through changing your habits and making, even small, improvements at your home. Check with your utility to see if they have programs to help you get an energy audit or provide incentives for energy efficiency upgrades.
Utility-Scale Demand-Side Management
Energy efficiency programs that help us lower our electric bills also help the utility lower costs for everyone. Our utilities should be offering programs that help low- and moderate- income ratepayers.
Additionally, there are two programs that we advocate for; Virtual Power Plants and Inclusive Utility Investments.
- Virtual Power Plants (VPPs) allow utilities to access smart appliances, home batteries, and electric cars in our homes to make small adjustments to our HVAC systems or pull small amounts of electricity onto the grid when demand is high. Studies show that VPPs are 40-60% than gas peaker plants.
- Inclusive Utility Investments is a financing program where the utility will pay the upfront cost for energy efficiency upgrades and allow the ratepayer to pay that investment back through the savings on their bill.
DIY Home Energy Efficiency Tools
- ENERGY STAR: A Do-It-Yourself Guide to Sealing and Insulating
- ENERGY STAR: more project guides with step-by-step instructions
- ENERGY STAR: Low- to No-Cost Tips for Saving Energy at Home
- Energy Vanguard: 10 Uncommon Tips for Winterizing Your Home
- Do-It-Yourself online energy audit tool: US Department of Energy Home Energy Saver
- Search available utility and tax incentives by zip code: Database of State Incentives for Renewables & Efficiency®
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Take Action
Here are two easy ways for you to take action for energy democracy.
