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Governor Ritter Signs Demand-Side Management Bill
May 31, 2007
Utility demand-side management programs are back in
business in Colorado. Last week, Governor Bill Ritter signed House
Bill (HB) 1037 into law, which directs natural gas utilities to
offer rebates to customers who purchase energy-efficient equipment.
The Colorado Public Utilities Commission will
establish rules for these energy efficiency programs and require
them to be cost effective. Consumers will benefit from the savings
utility bills over the years after installing energy efficient
equipment. The utility rebates will cover part of the cost of
purchasing energy-efficient equipment, which is usually more
expensive than standard models. The commission rules will allow
utilities to recover the cost of the efficiency rebates in their
rates (rate base).
The bill covers only natural gas distribution
utilities, such as Xcel Energy in Denver and Aquila in Pueblo.
Natural gas utilities can spend up to 0.5% of their revenues on the
efficiency programs.
Howard Geller, director of the Southwest Energy
Efficiency Project (SWEEP) in Boulder, said, "HB-1037 will help
consumers reduce their energy use and consequently lower their
energy bills." Geller estimates that Colorado households and
businesses will save as much as $1.2 billion through 2020 because of
this bill. See the SWEEP May 22 press release:
http://www.swenergy.org/media/pr2007_0522.pdf
During the signing ceremony, Governor Ritter noted
that other western states have provided incentives for energy
efficiency measures. These states have experienced reductions in
usage. In particular, Ritter pointed out that small business owners
in southern California and Utah have benefited substantially from
lower energy bills through utility-run energy efficiency programs.
State Representative Claire Levy (D-Boulder), who
sponsored the measure, said at the ceremony: "The cheapest, cleanest
form of new energy possible is energy conservation."
See a News-9 video clip broadcast May 22 by KUSA-TV
in Denver:
http://www.9news.com/video/player.aspx?aid=34782&bw=
Ritter also signed other bills last week that relate
to renewable energy and energy efficiency.
For details, see a news article published by the U.S. Department of
Energy on May 23:
http://www.eere.energy.gov/states/state_news_detail.cfm/news_id=10986/state=CO
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