Aryeh Alex, June 13, 2019
Report confirms that—among other known benefits–Ohio’s energy efficiency standards also suppress energy market prices, delivering lower monthly bills for all Ohioans.
Columbus, OH—Today, Resource Insight, Inc. released a new report detailing the impact of Ohio’s energy efficiency programs on wholesale energy prices paid by all Ohioans, and determined that Ohioans are saving an additional $2 per month because of the efficiency programs. As noted in the report, energy efficiency programs produce five discrete categories of benefits for customers: reduced need to purchase (1) energy and (2) capacity; (3) lowering of wholesale electric market prices; (4) decreased costs for distribution infrastructure; and (5) less electricity lost during long-distance transmission. The report shows that, thanks to Ohio’s Energy Efficiency Resource Standard (EERS) efficiency programs, the third category of these benefits – lower wholesale prices – saves all Ohio residential customers approximately $2 per month on their bills. This means that while most Ohio utility customers benefit from participating directly in the Energy Efficiency Programs, even those who do not take advantage of the discounts and rebates through the programs benefit significantly.
Ohio’s energy efficiency resource standard sets minimum benchmarks for the amount of energy that Ohio electric utilities must save their customers through energy efficiency programs each year. These efficiency programs save customers who directly participate in the programs an average of $7.71 per month, and also help reduce overall energy usage and consumption across Ohio, resulting in lower wholesale energy prices paid by Ohio families and businesses. One of the many benefits of running efficiency programs is that when demand for energy is reduced, suppliers avoid the need to purchase energy from more expensive sources. As a result of lower energy usage across the board, Ohioans reap the benefits of lower costs to the tune of $2 less per month. This $2 savings per month is in addition to the $7.71 that Ohioans save each month thanks to the efficiency standards, and is referred to as wholesale price suppression.
“Our energy efficiency resource standards have saved Ohioans money every year that they’ve been in place, and this study is additional confirmation of that fact,” said Miranda Leppla, Vice President of Energy Policy for the Ohio Environmental Council. “Whether Ohioans are personally taking advantage of the energy efficiency program offerings or not, continuing to operate our efficiency programs means all Ohioans’ electricity bills are lower. Seeing that there is another $2 in savings every month from lowered wholesale power prices makes the case even more clear for energy efficiency. This is the best deal Ohio electricity customers can get for their money.”
“Because the efficiency programs reduce energy consumption across the state, energy prices are lower for all Ohioans,” said Rob Kelter, Senior Attorney with Environmental Law & Policy Center. “Our Energy Efficiency Resource Standards are vitally important, not only for the environmental benefits that result from reducing our energy consumption, but because they keep energy prices low for all Ohioans.”