There are some funny rules in the energy game. In both Massachusetts and Rhode Island, energy efficiency is required to cost LESS than natural gas or electricity. But natural gas and electricity are allowed to cost more than energy efficiency. There’s no level playing field. So how does that play out?

Efficiency programs are screened for cost-effectiveness and so efficiency programs usually produce huge lifetime savings for ratepayers. In fact, a new analysis from Rhode Island shows that the cost of electricity from December 2013 through March 2014 during peak hours was about double what was originally projected by efficiency program managers. This means that the actual benefits of efficiency in Rhode Island during those winter peak hours was also double what was initially projected. 

Taking it further, experts have calculated that if electricity prices remain high over the next three winters, energy efficiency will deliver $200 million in additional benefits to Rhode Island, over and above what they thought in 2013! Those are real dollars flowing back to Rhode Islanders. The same concept applies to Massachusetts, but on a bigger scale.

Question of the day: With numbers like this in favor of saving energy, why is that just five percent of my most recent National Grid electricity bill went to saving energy? 

Answer: The Department of Public Utilities needs to level the playing field and require utilities to spend more on energy efficiency and less on expensive natural gas.