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Clean Energy Testimony

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Support of Energy Efficiency Standards/ Support A516


Testimony of Emily Rusch before the Assembly Telecommunications and Utilities Committee.

As the new home of NJPIRG's environmental work, Environment New Jersey can be contacted regarding this news release.

Over the past several decades, New Jersey’s energy demand has grown twice as fast as our population, and our increasing dependence on electricity brings with it a variety of problems that directly impact our quality of life.

High Electric Bills: We’ve all had that experience of opening up a utility bill, and gulping at the amount due. The more energy we use, the more consumers are spending on their monthly utility bills. This past August when electric rate caps were removed, and customers experienced an increase in how much they were spending each month to keep the lights on. We need to take advantage of solutions to lower electricity costs for consumers.

Strain on the Electric Grid: As we increase our electricity use, we pay in other ways as well. High demand increases the likelihood of blackouts, such as the one that occurred last July along the shore. High demand also increases the amount of money that utility companies spend on the lines and poles to transport electricity—costs that are passed along to ratepayers. Two weeks ago, over 500 residents of Ocean and Atlantic counties showed up at a public hearing to oppose construction of new electric transmission lines near senior communities. Experts agree the transmission lines would improve service to Southeast New Jersey. However, in a crowded state like New Jersey, new lines will not be welcome no matter where they are built, since the choices are either residential areas, the preserved Pinelands, or the historic view shed of the Parkway. New conflicts will continue to occur if we do not curb our electricity use.

More power plants: Current electricity use depends almost entirely on dirty and dangerous sources like natural gas, coal, and nuclear power. Increased electricity demand results in more health-threatening pollution like soot, smog, and toxic mercury, and continues our reliance on aging nuclear plants like Oyster Creek.

We need to make our everyday energy use more efficient. New Jersey should start by passing statewide energy efficiency standards.

We surround ourselves with appliances and technology that depend on electricity to run. One of the easiest ways to reduce unnecessary energy use is by making sure everyday fixtures in our lives are more efficient, like the traffic light on your street corner, the lamp in your home, or the heater at the office.

Since the 1970s, common appliances like the household refrigerator have had efficiency standards to protect consumers from high electricity bills. In large part because the standards took outdated technologies off the marketplace, a typical electric bill for household refrigerator use has dropped from $193 to $40 a year. The current New Jersey legislation looks at a set of new products that are not currently regulated.

The products in this legislation were chosen because there are efficient technologies already on the marketplace that meet the proposed standards. The goal of the standards is not to push new technologies, but rather take the most inefficient technologies off the marketplace.

The products were also chosen because all will save the consumer a significant amount of money over the life of the product through decreased electricity bills. For almost all the products, the purchaser will start saving money within a year or two.

Three Product Examples:

Traffic signals: Traffic signals typically use incandescent light bulbs that waste energy and burn out frequently. Traffic signals using LED technology reduce electricity use by 90 percent over incandescent bulbs. LED technology also lasts up to 10 times longer than incandescent lights: saving cities and states money on electricity bills, lowering maintenance costs, and improving traffic and worker safety as fewer lights will be out at any given time. The upfront costs of the product is made back through electricity savings within three years, and energy savings for each traffic light is more than $450. However, the real savings for towns is in the decreased maintenance. A New Jersey manufacturer, Dialight, based in Farmingdale, estimates that 30 percent of New Jersey towns already use the more efficient lights because of the huge benefits. By 2020, this standard will save New Jersey towns $41 million dollars.

Cable boxes: The typical cable box, given to you by the cable company when you sign up with them, is using electricity all the time—even when you television is off, even when you are at work, even when you are sleeping. Inexpensive technology exists to reduce the electricity use by up to 75 percent, by reducing the amount of “standby power” used, but most cable companies continue to give customers the outdated, wasteful product. Even though the technology costs no more than a few dollars, the companies have no incentive to offer more efficient boxes and as a result, consumers suffer with higher electricity bills. By 2020, this standard will save consumers $655 million dollars.

Torchiere lamps: Torchiere lamps are popular portable lamps that direct light upward, producing soft indirect lighting. Typically, these lamps consume around 300 watts of energy and the bulbs run extremely hot. In fact, more than 400 fires have been traced to halogen-based torchiere lamps. Torchieres using compact fluorescent technology typically use 80 percent less energy to produce the same amount of light and run much cooler, saving energy and eliminating the fire hazard. By 2020, this standard will save consumers $567 million dollars.

The wasted electricity from inefficient appliances does not just affect the individual homes and businesses where the products operate, but everyone. Higher demand for electricity increases the rates everyone pays for electricity. Increased electricity use also results in more health-threatening soot and smog pollution from coal and natural gas power plants and increases our reliance on aging nuclear power plants with safety risks. And increased demand for electricity means more power lines in our already crowded communities.

Energy efficiency standards on appliances is a simple step that reaps huge benefits for the state. In fact, the energy saved over the next 15 years from the standards currently in the legislation will be equal to the amount of electricity used by roughly five percent of the households across the state.

By the year 2010, the energy efficiency standards in the New Jersey legislation will reduce New Jersey’s peak demand by over 300 MW, the demand of roughly 300,000 households. Increasing energy efficiency will decrease the amount of new power lines needed in the future, avoiding the problems that South Jersey now faces. And by the year 2020, the new energy efficiency standards will save New Jersey homes and businesses over $1.7 billion on their electricity bills.

We need to make changes in how we use electricity. The first step must be increasing energy efficiency, and energy efficiency standards are a good start. I urge this committee to act quickly to enact this common-sense policy, so New Jersey electricity users can start reaping the benefits.