Full Title: Bill Savings in a Clean Energy Future: Clean Power Means Lower Bills for States
Author(s): Patrick Knight, Patrick Luckow, Spencer Fields, Tommy Vitolo, Sarah Jackson, Bruce Biewald, and Elizabeth A. Stanton
Publisher(s): Synapse Energy Economics, Inc
Publication Date: 10/2015
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On June 2, 2014, the U.S. Environmental Protection Agency (EPA) released its proposed Clean Power Plan under Section 111(d) of the Clean Air Act. The Clean Power Plan aims to reduce emissions of carbon dioxide (CO2) from existing fossil fuel‐fired power plants by approximately 30 percent below 2005 levels by 2030. Synapse Energy Economics, Inc. (Synapse) analyzed the impacts of the proposed Clean Power Plan on electricity consumers in every state modeled by modeling what would happen if each state invested heavily in energy efficiency and renewable energy. Analysis showed that reducing electricity sector emissions through the addition of energy efficiency and renewable energy actually lowers electricity costs over the long term compared to continuing with existing practices and policies. Moreover, in Synapse’s modeling, the scenario that produced those lower electricity costs achieved a much greater emissions reduction on average than that called for by the proposed Clean Power Plan.
In a Synapse Clean Power Plan compliance scenario with strong energy efficiency and renewable energy investments (the “Clean Energy Future” scenario), consumer bills are expected to fall while states meet or exceed their emissions targets. For the two-thirds of residential consumers who participate in ratepayer-funded energy efficiency programs under this scenario, 2030 bills are expected to be $35 per month lower than in a business-as-usual (“Reference”) scenario and, on average, $14 per month cheaper than residential bills were in 2012.