Greenwire: As part of a push to save energy rather than pay to build new plants, Idaho Power Co. has been paying its customers to cut power use at peak times for six years, a strategy that energy experts say could be replicated by other power companies across the country.
In response to the tenfold spike in peak-time energy prices in the past decade, Idaho Power began paying farmers in 2004 to turn off their pumps for up to 15 hours a week during times when air conditioners and other gadgets are on. The venture paid off, resulting in drop-offs of as much as 5.6 percent of peak power demand and reducing the utility’s need to build new plants.
The company has also adopted other strategies to promote energy efficiency such as paying users 15 cents for each square foot of insulation they put in their attics and letting customers sign up for a “demand response” program for air conditioners that allows the utilities to cycle their air conditioner power on and off at crucial times for a price rake off.
“It’s clearly iconic in terms of a utility that’s turned the corner,” said Tom Eckman, the manager of conservation resources with the Northwest Power and Conservation Council, a planning group created by Congress. “They have gone from pretty much ground zero to a fairly aggressive program level.”
Idaho Power is not the only utility eyeing ways to cut back on energy use, but it spends a much higher percentage of its revenue on saving energy than most other utilities, said Ralph Cavanagh, a senior lawyer at the Natural Resources Defense Council. About half of all utilities now run programs that pay customers to cut their energy use during peak periods, said Steve Nadel, executive director of the Washington, D.C.-based advocacy group American Council for an Energy-Efficient Economy. And companies like Boston-based Enernoc Inc. have sprung up to help utilities by outfitting stores and other businesses with devices to turn off lights or reduce power in other ways during a power squeeze.
But to make up for selling less electricity, Idaho Power — and other companies like it — are raising rates. For example, Idaho Power has asked regulators to make permanent a pilot program it began in 2007 that allowed it to charge an energy efficiency rider of 4.75 percent on electric bills, one of the highest percentage charges in the country to help pay for this type of program.
Critics also maintain Idaho Power has lagged behind other utilities when it comes to renewable energy use because it has not invested in wind power initiatives like most of its neighboring states’ utilities (Kate Galbraith, New York Times, Jan. 24). – DFM
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