Is America Becoming More Energy Efficient — or Just More Frugal?

Interesting news item today from the Associated Press (AP). We spotted it on Energy Central. Under the headline, "Shocker," the story reports:

Utility executives have been aware that the rate of demand growth is slowing, but a more dramatic shift than they expected may be under way. Executives were particularly surprised by a dip (in electricity use) during the first three months of this year, the most recent national quarterly numbers available. Adjusted for the effects of weather, residential power demand fell 1.3 percent nationwide, an unusually sharp drop.

For decades, the rule of thumb in the utility business was that a stable utility would see demand growth of 2.5% per year. Since 2000, that's slowed to about 2%. Now the Electric Power Research Institute reports that over the next 10 years, with all else being equal, we could see a continuation of this slowdown in annual demand growth. The AP news writer puzzled over the reasons behind this, noting that the national economic slowdown is one likely culprit. If the more/bigger trend in conspicuous consumption ebbs, we could see lingering impacts. Will people leave their gigantic (foreclosed?) homes behind? Perhaps we are in for a time of a communal snugness, as kids return home after college (unfortunately jobless or under-employed) and as grandparents move in (unfortunately due, in part, to a lack of healthcare dollars).

But WAIT, it is entirely possible that an energy-smart lifestyle, equipped with just the high-tech, efficient appliances we need, could be something to aspire to, rather than the result of economic insecurity. The AP news writer allows that that also could be true. Laptops, cell phones, and other gizmos sip electricity as they charge longer lasting batteries today. Even big screen TVs are getting more efficient.

But here's the untold story: At a recent Solar Electric Power Association conference for utilities, a VP of San Diego Gas and Electric and Mark Gerken, CEO of the public power giant, AMP, agreed: It is entirely likely that the electric hybrid vehicle will be coming online soon. Suddenly, utility loads could start to increase again, as people charge their cars with homegrown electricity instead of foreign oil. For example, in San Diego, a hybrid electric vehicle represents a 75% increase in the average household electric use. Utilities will need energy efficiency and all the renewables they can get in order to meet this increased demand. Some people might say hybrid electric vehicles are still a dream. At the SEPA conference, utility execs considered that possibility. They also remembered their utility history... back to a time when new electric appliances like TVs and air conditioners seemed unnecessary.

By building clean, lean, strong utilities today and encouraging energy-smart living, utilities might be able to look back on this time as the dawn of a new and better era.

This blog first appeared on the Clean Energy Ambassadors website. Clean Energy Ambassadors provides resources, webinars, and training for consumer-owned utilities nationwide, with an emphasis on leveraging the power of public participation in utility energy efficiency and renewables programs.