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In The News
January 29, 2008
CEP Testimony before House Energy & Utilities Committee Re: KS HB 2632, 29 January 2008
Thank you for the opportunity to address you this morning, and for the fine work this committee and its members do for the state of Kansas.

I am Nancy Jackson, Executive Director of the Climate & Energy Project of The Land Institute, based in Salina, Kansas. I speak today on behalf of Kansas House Bill 2632.

Last week, 400 Kansans came out on bitterly cold evenings to take part in our community energy forums in Salina, Topeka and Overland Park. Given the lively and extended question-and-answer sessions, I can certainly attest to the keen interest that citizens are taking in the crucial issues before this committee.

Both Westar and KCPL were good enough to participate in those forums, and they fielded numerous questions about energy efficiency. Citizens appear to be eager indeed to enroll in utility programs. Better yet, given Westar and KCPL’s answers to questions, 800 MW of energy efficiency to meet new demand in Kansas appears to be a reasonable and achievable goal.

Like so many others today, we view energy efficiency as the first fuel – the least-cost, most immediately available, lowest-impact resource to meet new demand.

As such we support all cost-effective efficiency measures – that is, all energy efficiency that costs less than alternative new generation, including supply, fuel, and distribution.

Such a strategy maximizes existing generation while spurring local economies. Dollars spent on improvements to existing building stock – such as insulation, windows, lighting, HVAC, and updated appliances – tend to stay close to home with local contractors and suppliers and have the advantage of reducing demand permanently.

Indeed, the EPA recently announced that it expects energy efficiency could save Americans $500 billion in energy costs over 25 years and reduce annual greenhouse gas emissions equivalent to those from 90 million vehicles.

We know some harbor a concern about capitalizing advertising costs. While certainly a legitimate issue, we trust that the KCC will carefully consider such details when considering specific rate cases. Energy efficiency programs do require marketing, just as transmission lines require tree-trimming. If the overall costs of those programs, including marketing, remain cost-effective – that is, less than new generation – and demand reduction is real and permanent, then we view those investments as valid and would hope they would be deemed recoverable.

Ultimately, of course, the implementation of energy efficiency will be worked out at the KCC, where a docket is pending. We hope that our state regulators will identify aggressive targets – a minimum reduction of 1% of kilowatt/hour sales per year, for example – and that utilities will be held accountable, with penalties for not achieving targets and incentives for meeting or exceeding them.

There seems ample room here for the legislature to speak, setting a long-term policy framework to shape utilities’ expectations, and for the KCC to exercise its discretion in implementation.

No Kansan wants to leave money on the table. With our strong agricultural base, and a cultural memory of harder times, few Kansans wish to waste energy. We appreciate all that our legislators and regulators can do to help us make the most of our energy dollars and be the best possible stewards of our valuable resources.

Again, thank you for the opportunity to be heard today, and for acting on behalf of all Kansans.

For a .pdf copy of this testimony, click here (100 KB).
Contact Name: Nancy Jackson
Contact Email: jackson@climateandenergy.org
Contact Phone: 785-331-8743
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