When Enough Is Not Enough; The Value of Conservation in an Uncertain World Calls for Expanding System Benefits Charge Funding

Charlie Grist, Northwest Power Planning and Conservation Council
Tom Eckman, Northwest Power and Conservation Council

Keywords

Abstract

One of the most compelling findings from the Northwest Power and Conservation Council’s 5^th Northwest Power Plan is that acquisition of low-cost energy-efficiency reduces both power system cost and the risk associated with exposure to volatile prices in the wholesale market. This finding highlights valuable opportunity for expanded conservation funding and
acquisition to increase electric system benefits. The finding also highlights a potential problem for conservation mechanisms with limited funding levels, like many of the system-benefit-charge approaches now used across the United States. This paper describes new findings from the Council’s fifth power plan regarding on the value of energy efficiency in an uncertain future. The paper also explores solutions to the limited funding issue as it applies to the Energy Trust of Oregon Inc., an SBC implementer. Beginning in 2006 the Energy Trust, will have to defer costeffective efficiency projects due to statutory limitations on its funding.