Powerful savings

The staff of the Florida Public Service Commission is expected to recommend new targets next week for how much energy the state's power companies should save through conservation efforts. The timing could not be better. With the U.S. House having already passed a clean-energy bill and with similar legislation awaiting action in the U.S. Senate, Florida has an opportunity to make a serious dent in demand. An aggressive target could curb consumption, save ratepayers money in the long run and cut emissions of global-warming greenhouse gases.

A PSC report in February noted that Florida utilities have largely met conservation targets since the energy efficiency law was enacted in 1980. Over the last three decades, the savings through efficiency efforts have generated enough capacity to serve approximately 1.6 million households, the PSC reports. By conserving energy and making their households more efficient, consumers do not just save on rates. They help lessen the need for new power plants, whose costs are passed on to ratepayers. Aggressive goals for conservation are important because the benefits for slowing demand compound over time.

Environmental groups want the savings through efficiencies to equal 1 percent of a utility's annual sales. A witness hired by the PSC set a slightly lower goal. The utilities complain the targets are "arbitrary" numbers that do not recognize the uniqueness of Florida weather or the impact that these measures would have on ratepayers. Tampa Electric said the 1 percent target backed by environmentalists is six to 10 times as ambitious as what the company has proposed.

Clearly, there is room to be more aggressive. Five of the seven utilities covered by the state targets met or surpassed all their goals in 2007. Homeowners will change their behavior if the utilities offer real incentives and market the programs. There are also opportunities to capitalize on efficiency projects funded by federal stimulus spending on clean energy. Cost should always be a factor. But there is a long-term benefit to forestalling new plants, burning less fossil fuel, emitting less and promoting a regard for conservation. The PSC staff should recommend targets that make Florida a leader in energy efficiency.