For decades, it’s been well-known in the country and western (C&W) music industry that "if you’re gonna play in Texas, you gotta have a fiddle in the band." The guitars, drums, harmonicas, and piano — they’re all expected on stage. But as the legendary C&W group Alabama recognized, a fiddle is a must when performing in Texas.
The Texas energy industry also has an imperative — and that’s energy efficiency, which has been strumming progressive practices in the Lone Star state in recent years.
Our Association of Electric Companies of Texas (AECT) has been supportive of energy efficiency over the years, with one special caveat: There is no "silver bullet" for dealing with solutions to the state’s growing electricity demand issues. Energy efficiency, renewables, and traditional generation coupled with new technologies are all necessary in the near- and long-term future.
Efficiency, Meet Demand
The state’s population is projected to leap from 25.1 million in 2010 to 30 million by 2020 and to 43.6 million by 2040. The Electric Reliability Council of Texas (ERCOT) is the grid operator for 85% of the statewide load. It expects electricity demand inside ERCOT to climb from nearly 65,000 MW in 2008 to approximately 90,000 MW in 2025 — a 28% increase. Again, all energy-saving strategies available will be needed to meet this increased demand.
Energy efficiency programs in Texas have grown over the past decade. The Texas Electric Choice Act passed in 1999 created an energy efficiency program that has proven to be highly successful. The act required each electric utility to provide energy efficiency programs and incentives. Multiple low-income energy efficiency programs were made available, both through individual companies and federal programs.
The statewide benefits of energy efficiency have been validated in numerous ways. In Texas, energy savings from standard-offer programs and market transformation programs resulted in a reduction equivalent to 650,094 pounds of nitrogen oxide emissions per year.
In 2007 (the most recent year for which data are available), utilities in Texas exceeded their statewide legislative energy efficiency goals for the fifth straight year. Utilities achieved 167 MW of peak demand reduction in 2007, which was 23% above their 136 MW goal.
New energy efficiency legislation passed in 2007 resulted in several programs to help reduce electricity consumption in Texas. The legislation raised the energy efficiency goal for electric utilities from 10% of annual demand growth to 15% in 2008 and 20% this year. The legislation also called for the Public Utility Commission (PUC) of Texas to study the possibility of moving those goals to 30% and eventually 50% of load.
That legislation included provisions, among others, aimed at reducing energy consumption by schools and government buildings. It established more energy efficient building standards for low-income housing. It also created an annual sales tax holiday during Memorial Day weekend for energy efficient products that bear the federal Energy Star label.
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