July 26, 2007 — According to a February 2007 study by the Electric Power Research Institute (EPRI), U.S. electric utilities could reduce emissions of carbon dioxide below 1990 levels within 23 years by taking aggressive steps in seven principle areas, including energy efficiency. The EPRI report sees potential for a 9 percent reduction in electric consumption – equivalent to the output of 50 large power plants – through efficiency measures.

In the area of energy efficiency, the nation’s electric co-ops are ahead of the game.

“Energizing Efficiency,” published in this month’s issue of RE Magazine, details the myriad ways that co-ops help their member-owners reduce their energy consumption.

“Unlike investor-owned utilities, not-for-profit, consumer-owned electric co-ops aren’t structurally motivated to sell more kilowatt-hours,” observes John Holt, NRECA senior principal for generation and fuel. “Co-ops, to produce a reliable supply of electricity at a competitive price, strive to maximize use of existing resources and infrastructure. Efficiency has always been a natural extension of our business model.”

Co-ops approach the task of maximizing efficiency from several different angles.

NRECA Market Research Services studies find that 49 percent of all electric co-ops provide financial incentives – such as low- or no-interest loans for household improvements, leases on equipment and ownership or maintenance of standby generators to reduce power use when consumption spikes – to spur investment in energy efficiency.

• Forty percent of co-ops have deployed advanced metering devices. In fact, the Federal Energy Regulatory Commission (FERC) has reported that “market penetration of advanced metering [13 percent] is highest among rural electric cooperatives.

• Cooperatives deploy a wide variety of programs to encourage members to use compact fluorescent light bulbs.

• Many co-ops offer energy audits to member-consumers. United Cooperative Services in Cleburne, TX, has embarked on an ambitious campaign to conduct free energy audits for all 50,000 of its members.

Cooperatives have also enjoyed significant success working with commercial and industrial members to reduce their energy costs.

• Nolin Rural Electric in Kentucky recently helped Fort Knox meet an Executive Order ordering military bases to reduce energy usage by 30 percent. Nolin REC, Fort Knox, and Trane Co. developed the largest and most comprehensive energy efficiency program among electric cooperatives. By implementing 74 energy conservation projects, the base has lowered energy usage by 43 percent in 10 years. These efforts have improved the quality of life for base residents and workers and turned an unfunded problem into energy savings totaling $9.1 million.