Study Suggests Investments In Energy Efficiency Better Choice Than Coal-Fired Power Plant

BRISTOL, Va. – If Dominion Virginia Power were to invest in energy efficiency instead of completing a coal-fired power plant in Wise County, it would save rate-paying households an average of at least $77 a year, according to a study formally released today.

Performed by the research and consulting firm Abt Associates and commissioned by opponents of the controversial $1.8 billion plant, the study compares projected economic effects of the plant to equivalent investments in energy efficiency.

It finds that investing in energy efficiency, while a non-traditional approach to meeting rising energy demand, would do more for the state’s economy than finishing the plant – and would bring down the cost of electricity.

“Efficiency requires no lifestyle sacrifices,” said Tom Cormons, Virginia campaign coordinator for Appalachian Voices, the primary organization that paid for the study. “We’re not talking about diminishing convenience or comfort, just providing those things in a smart, more-efficient way: weatherization of homes, insulation, more efficient lighting, better appliances and so forth.”

Dominion Power officials could not be immediately reached for comment when the study was released online late Wednesday.

According to the study, investment in energy efficiency would boost the economy by at least $323 million more than the plant would in 2012 and as much as $675 million in 2025.

Energy efficiency programs would lead to the creation of at least 2,940 more jobs than the power plant in 2012 and as many as 6,051 more jobs in 2025, according to the study.

“The plant also contributes to Virginia’s economy during the construction period: Our analyses indicate an annual average increase of $180 million in gross state product, 1,422 jobs and $105 million in employee earnings over the four years of plant construction,” according to the report.

The study also said the plant construction represents a short-term economic benefit for the state, while investing in energy efficiency programs would be a long-term benefit.

Cormons said energy efficiency is so cost-effective vs. new power generation, it would actually cause a decrease in electric rates – as well as decreasing the amount of energy customers have to pay for.

“It might start with free home energy audits so they [rate-payers] can see what the problems with their houses are and then [utilities] essentially helping them out with those kinds of projects,” he said of how an energy efficiency program might look.

“The power company would get the same rate of return on investments on efficiency as it currently gets for investments in new generation,” he said.

Kathy Selvage is vice president of Southern Appalachian Mountain Stewards, another of the five organizations involved in the study through the Wise Energy for Virginia Coalition, which opposes construction of the 585-megawatt plant.

Selvage said that as the Virginia General Assembly prepares to go back into session next week, she hopes to see a bill that would make energy-efficiency investments mandatory for companies like Dominion.

“The state of Virginia could conserve through efficiency measures, 19 percent of its required energy by 2025,” Selvage said.

“If we can do that, it is the quickest, the cleanest and the cheapest way we can provide energy needs for some time to come if we will promote energy efficiency. What we can do through doing this, we will create jobs, we’ll save Virginia families money on their electric bills.”

Adam Wells, outreach coordinator for the organization, said new building codes requiring more energy-efficient construction also help slow the increase in demand for electricity.

Cormons said he anticipates good energy efficiency legislation from the General Assembly this year. And while he and others are still hopeful that construction of the Virginia City Hybrid Energy Center will be stopped, they say investment in more efficient energy will help rate-payers in any case – and perhaps prevent the need for future power plants in Virginia.

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