Report: State Could Go More Green:
North Carolina has significant potential to develop wind and other alternative energy without drastically increasing customer bills, a study prepared for the N.C. Utilities Commission says.
The report, presented Wednesday to state lawmakers, concluded that untapped renewable energy could provide enough electricity to offset the need to build 1,800 megawatts of power generation, the equivalent of two power plants the size of Progress Energy's 900-megawatt Shearon Harris nuclear plant in Wake County.
Not surprising, I'm a little confused with how the economics is interpretated by the reporter ...
... The study issued Tuesday says that electric utilities in the state could generate 5 percent of their electricity from renewables and as much as 10 percent if they expanded their energy efficiency programs. Now, almost all of the state's electricity comes from nuclear power plants and coal-fired plants, with less than 2 percent coming from renewable resources.
A requirement for 5 percent renewable energy would double use of renewables in the state and result in rate increases of less than 1 percent, the study says. A 10 percent requirement, implemented over 10 years, would raise rates by 3.6 percent at most in the 10th year.
If energy efficiency were included as part of the program, rates would go up by less than 1 percent, but actual bills would be lowered because energy use would decrease, according to the study.
Ignoring the phrase about energy efficiency ... if rates go up by 3.6% then energy use must fall by more than 3.6% to get energy bills to fall. In other words, energy demand must be elastic, which it isn't, at least at these small price increases. My bill might rise by about $10 month -- is that going to get me to turn the thermostat down and wear a cardigan? Nah.
But that assumes a constant demand (curve). Now, on to energy efficiency. Here we have a reduction in the demand (curve) for energy, not caused by price increases (a movement along the curve) but by some program to get people to use less energy. The reduced demand would lead to lower prices ... which is how the rate increase might go from 3.6% to 1% (supply and demand are shifting left).
So, with a renewable energy requirement in NC your energy bill might go up a little bit. But, if you turn your thermostat down your bill will go down (no duh). The combination of the two will lead to almost no impact on your bill but you'll need to wear a Carolina blue cardigan (ugh).
