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operated energy efficiency and demand
management programs in states with traditional
regulatory models, had resulted in
savings of 67,000 gigawatt-hours of
power—equivalent to the annual output of
about eight nuclear power plants. 91
Yet, the potential for further efficiency
improvements is immense. Of the approximately
$1.1 billion spent on energy efficiency
programs in 2003, more than 80 percent
was spent in just 10 states. 92 In 21 states,
including populous states such as Illinois,
Pennsylvania, Maryland, Virginia and
Georgia, energy efficiency spending represented
less than one-tenth of 1 percent
of utility revenue. 93
Expanding energy efficiency funding and
programs in the states can reduce future
demand for power—thus reducing the perceived
need for nuclear reactors. In addition
to winning better programs, however,
advocates must also push for energy planners—including
utilities, PUCs and ISOs/
RTOs—to recognize the impact of energy
efficiency in their demand growth forecasts,
which are often used to justify new power
plants.
Renewable Energy Standards, Funds
and Other Policies
In addition to reducing consumption of
energy, demand for nuclear power can be
reduced by promoting the use of clean, renewable
sources of energy such as wind and
solar power. States have taken a variety of
actions over the last decade to dramatically
ramp up the generation of power from renewable
sources.
At least 19 states have adopted renewable
energy standards (often called “renewable
portfolio standards”) that require a
growing percentage of a state’s electricity
to come from renewable sources. The
most aggressive standards call for gradual
increases—on the order of 1 percent per
year—in the share of power coming from
renewable sources. In addition, at least 15
states devote some funding to the development
of renewable energy sources, with the
funding often coming from small systems
benefit charges on utility bills. The combination
of renewable energy standards and
state funding is projected to lead to the installation
of about 22 gigawatts of renewable
electricity capacity by 2020—enough
to offset at least seven nuclear power plants. 94
Other public policies can also smooth
the way for renewable energy sources:
• Solar incentives and new home
standards – The California PUC
recently approved the nation’s largest
investment in solar photovoltaic (PV)
power; a $3.2 billion incentive program,
funded through a surcharge on
utility bills, that is anticipated to result
in the installation of as much as 3,000
MW of solar photovoltaic systems in
California over the next decade. 95
California has also contemplated
policies to require the installation of
solar PV systems in new homes or to
require that new homes be “solar ready.”
• Net metering – Solar PV systems are
more economical for homeowners and
businesses when the rules for selling
power back into the grid compensate
PV owners fairly. Strong “net metering”
policies (as well as rules that
require utilities to respond quickly to
customers’ requests to connect PV
systems to the grid) can encourage the
installation of solar power systems
and other forms of on-site power
generation.
• Fair standards for wind power – In
many parts of the country, new wind
power projects face an array of economic
obstacles resulting from outmoded
regulations and market rules.
Wind power projects are often unfairly
penalized under old market rules
designed for conventional power
plants. 96 In addition, many states that
have undergone retail restructuring
now require utilities to purchase power
on the open market in short, one- to
Challenging Nuclear Power in the States 29