Environmental Law

The New Light Bulbs Lose a Little Shine - WSJ.com

By STEPHEN HOLZER

California utilities have used ratepayer funds to subsidize sales of more than 100 million of the bulbs since 2006, most of themmade in China. It is part of a comprehensive state effort to use energy-efficiency techniques as a substitute for power production. Subsidized bulbs cost an average of $1.30 in California versus $4 for bulbs not carrying utility subsidies.

Anxious to see what ratepayers got for their money, state utility regulators have devoted millions of dollars in the past three years for evaluation reports and field studies. What California has learned, in a nutshell, is that it is hard to accurately predict and tricky to measure energy savings. It is also difficult to design incentive plans that reward?but don't overly reward?utilities for their promotional efforts.

When it set up its bulb program in 2006, PG&E Corp. thought its customers would buy 53 million compact fluorescent bulbs by 2008. It allotted $92 million for rebates, the most of any utility in the state. Researchers hired by the California Public Utilities Commission concluded earlier this year that fewer bulbs were sold, fewer were screwed in, and they saved less energy than PG&E anticipated.

via online.wsj.com

Full post as published by Environmental Legal Blogs on January 22, 2011 (boomark / email).