MA Department of Public Utilities Calls for Critical Transition to Energy-Efficient System

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Colin Durrant, CLF Director of Communications
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Boston, MA (July 17, 2008) – State regulators put Massachusetts on a groundbreaking path to energy efficiency yesterday, issuing a new “decoupling” order that will promote efficiency and reduction of energy use in the Commonwealth. The Department of Public Utilities’ (DPU) order will be an important driver for a transition away from increasing demand for fossil fuels toward full deployment of efficiency, conservation and clean energy resources that are vital for mitigating the most damaging impacts of climate change.

“This decision is a critical tool for unleashing the full clean energy potential of the Green Communities Act that was signed into law just two weeks ago,” said Shanna Vale, staff attorney at the Conservation Law Foundation (CLF). “It will remove barriers that have been preventing full deployment of energy efficiency, conservation, and on-site clean energy generation.”

Under traditional rate regulation, utility revenues are tied to the volume of electricity delivered, where every kilowatt-hour saved has a negative impact on a utility’s bottom line. Decoupling turns that system on its head by opening the door to aligning utilities’ economic incentives with maximization of energy efficiency, conservation and on-site clean energy generation.

As the economic and environmental costs of fossil fuels continue to rise, the DPU’s decoupling order recognizes that the best way to control the cost of electricity while increasing the reliability of the system is to reduce consumption and control demand. Decoupling should effectively enlist utilities as full partners in putting Massachusetts firmly on a trajectory to achieve a sustainable, reliable energy future.

The DPU expects all gas and electric utilities to implement new plans in compliance with its order by the end of 2012.

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The Conservation Law Foundation (www.clf.org) works to solve the most significant environmental challenges facing New England. CLF’s advocates use law, economics and science to create innovate strategies to conserve natural resources, protect public health and promote vital communities in our region. Founded, in 1966, CLF is a nonprofit, member-supported organization with offices in Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.