Editor’s note: This commentary is by Charlie Smith and Chip Stone, board members of Vermont Energy Investment Corp., the nonprofit organization that operates Efficiency Vermont. Smith is the principal in Charles P. Smith Management and Strategic Consulting. He served as secretary of administration and secretary of human services for Gov. Jim Douglas and was president of Key Bank in Vermont. Stone is retired from a career spent primarily in the world of finance and commercial banking. He is a former representative in the Vermont Statehouse and was the commissioner of economic development under Gov. Madeleine Kunin.
[I]n the 15 years since Efficiency Vermont was launched, it has achieved, and in most cases surpassed, every performance goal established for it by the Public Service Board. Those goals require Efficiency Vermont to substantially reduce greenhouse gases and achieve significant energy cost savings for customers throughout Vermont, in every market sector including renters, homeowners, business owners, farmers, hospitals, manufacturers, schools and governments. This record of accomplishing energy savings is confirmed by the findings of a recent report by the Department of Public Service to the Legislature’s Joint Energy Committee.
The report focuses on the results of Vermont’s work on energy efficiency for the last 15 years and concludes that the public’s investment in energy efficiency has delivered a substantial financial return. By the end of 2014 Efficiency Vermont programs had netted about $50 million in avoided electricity purchases since 2000. Without investing another dollar, the efficiency measures that are already installed will continue to deliver savings to ratepayers that the department estimates will grow to a total of $483 million by 2025.
We’re calling attention to these successes because they might otherwise go unnoticed. Unlike the tangible poles, wires and power plants in our electric energy system, efficiency is often invisible. Most Vermonters probably don’t realize they are experiencing efficiency at work in the world around them every single day. It’s in the freezers at the corner store. It’s on our streets, where 75 percent of Vermont’s streetlights are now upgraded to super-efficient LEDs – more than any other state in the country. It’s in our homes, with appliances, lights, and pumps.
The report notes that residential customers on average use 13 percent less electricity now than in 2000, and businesses on average have reduced their usage by 14 percent.
Vermonters who participate in efficiency programs are saving money – and the department estimates that up to 90 percent of us have participated to some extent either through Efficiency Vermont or Burlington Electric Department programs. The report notes that residential customers on average use 13 percent less electricity now than in 2000, and businesses on average have reduced their usage by 14 percent.
Because we have used less electricity every year since Efficiency Vermont was created in 2000, we also have been able to reduce our contributions to build and maintain the New England electric grid, since states that use less power get to pay less into the system. Those direct savings are getting passed back to Vermonters, with our electric bills staying lower and more stable than our neighboring states.
In the world of finance it is often challenging to get investors to think beyond the short term. It is human nature to seek quick wins and big payouts. But those who are patient and apply a long-term perspective are rewarded. After 15 years of smart policy, Vermonters are reaping benefits of the state’s forward-looking leadership in promoting energy efficiency. Let’s take a moment to celebrate that success – and keep our eyes on the prize as we continue to redefine and reshape our energy system for the future.
