PROGRESS: EFFICIENCY, NOT NUKES, FOR NOW

First Duke, now Progress. Hmmm…What do they say when the lights go out? Whoops. Guess we’ll have to raise your rates…Is this a transparent version of what Enron did to California? Well, it is a way to conserve…Better watch how aggressively they pursue the efficiency programs. Or: Are they stalling on nuclear and coal because they see wind and solar coming?

Progress Energy puts nukes on hold; Promoting energy savings will come first, Progress Energy says. Expect rates to go up
John Murawski, May 31, 2007 (Raleigh News & Observer)

WHO
Progress Energy, CEO Robert McGehee; Progress Energy Carolinas, Lloyd Yates, incoming president; N.C. Utilities Commission,

WHAT
Progress Energy will test its 1.2 million customers’ commitment to energy efficiency as a way to avoid the expense and emissions from new plants.

WHEN
- Announcement May 30.
- Completed proposal submitted for review in September by Public Staff, N.C. Utilities Commission, Public Staff Director Robert Gruber.
- No new power plants for 2 years.
- Progress is adding 25,000-30,000 new customers/year (250 megawatts) and will need to build new plants by 2018, when the final decision on Shearon Harris nuclear plant is due.

WHERE
The delayed Shearon Harris nuclear plant is in Wake County, North Carolina.
Progress is based in Raleigh, North Carolina.

WHY
- Program goal: $50-$60 million/year in No Carolina efficiency programs to get 2000 megawatt reduction in energy use (replacing several power plants).
- New energy-efficiency program: customers cut consumption 10-15% thru improvements led by Progress, such as duct leak repair, a/c tuneup, home audits and new technologies like CF lightbulbs, remote-controlled thermostats and appliances. Prices will be increased on waste to recoup revenue lost to efficiency.
money and energy lost to inefficiency (click to enlarge)
- Cost-benefit analysis must show savings; Plan must include verification procedures.
Progress now saves 1,000 megawatts/year w/efficiency and "time of use" sliding rates (upped during peak use, cheaper off-peak).
- Duke Energy recently announce a similar program to offset 1,700 megawatts and avoid new plants.
- Progress and Duke both seek federal licenses for new nuclear reactors and back legislation for Renewable Portfolio Standards (RPS) for North Carolina. (An RPS guarantees a state will obtain a certain % of its energy from renewables by a date certain, giving businesses confidence that resources they develop will be purchased.)

QUOTES
- McGehee: "Hopefully after two years, we can set even more aggressive targets…”
Gruber: "We support the goal, but we have to be a little skeptical whether they can reach it…There's not a lot of specifics in the press release."
- Michael Shore, N.C. Environmental Defense: “These do look like significant numbers…These are the types of programs that make a difference."