Consumer groups, utilities at odds over energy proposal

Bill would require independent group to promote efficiency

? Consumer advocates and electric utilities have squared off over a bill that would require the establishment of an independent group to develop energy-efficiency programs.

Saving energy through insulation, efficient heating and air conditioning, and other improvements is seen as a way to reduce the need for more power plants.

“Energy efficiency is our most important, least expensive, most available source to meet new demand,” said Nancy Jackson, executive director of the Climate and Energy Project of The Land Institute.

But Kansas ranks 38th in energy-efficiency programs and policies, according to the American Council for an Energy Efficient Economy.

Five of the top 10 ranked states have energy-efficiency agencies like the one proposed by Senate Bill 284, which is being considered by the Senate Utilities Committee and may be voted on today.

The bill would require the Kansas Corporation Commission to establish an independent, not-for-profit corporation that would develop and monitor energy-efficiency programs.

The corporation would be funded through a charge to customers that would equal one-half percent of the participating utilities’ revenue.

David Springe, consumer counsel for the Citizens’ Utility Ratepayer Board, said the bill is a good idea because the energy efficiencies could lead to lower bills.

“Consumers are struggling to pay their bills and the current recession has only exacerbated this problem. Consumers need help,” he said. AARP has also endorsed the measure.

But the utilities say they are already doing a good job helping their consumers with energy efficiency.

“Westar believes that utilities can deliver more cost-effective energy-efficiency programs than a third party administrator,” said Randy Degenhardt, director of energy efficiency for Westar Energy.

The utilities already have a built-in relationship with customers on energy-related issues, he said. KCP&L also opposes the bill.

But Tom Thompson, a lobbyist with the Sierra Club, said he would prefer an independent agency developing energy-efficiency programs.

“Energy-efficient endeavors that are effective but not necessarily profitable would be less likely to be overlooked,” Thompson said.

Springe said an independent entity would provide consistency and not be conflicted about its purpose, while investor-owned utilities increase profits by selling energy.

Jackson, with the Climate and Energy Project, said there are pluses and minuses to both approaches, and since saved energy doesn’t pollute, efficiency “should be the centerpiece of any comprehensive energy policy.”