Testimony of the National Consumer Law Center in Support of SB 105: An Act
to Establish State Appliance and Equipment Energy Efficiency Standards
March 4, 2003
Charles Harak, Esq.
Senior Attorney
NCLC Energy Project
The National Consumer Law Center (“NCLC”) welcomes the opportunity
to testify in support of SB 105, a bill to increase energy efficiency standards.
The Northeast Energy Efficiency Project and other energy efficiency experts
project that passage of this bill will save New Hampshire consumers $47 million
by the year 2010 and more than $300 million by the year 2020 through lower expenditures
on energy. Lower energy consumption will also allow the state to avoid the need
to build approximately 70 MW of generating capacity through the year 2020. This
means reduced air emissions, improved health for the state’s citizens,
and less damage to the state’s fauna and flora.
But NCLC’s real interest in this bill is that it will help low-income
people who struggle to pay their energy bills. NCLC was founded in 1969 for
the purpose of promoting the interests of low-income people as consumers in
our society. For over three decades, NCLC has focused, among other issues, on
the household energy needs of poor people. This winter well demonstrates the
difficulty low-income households face in obtaining minimum amounts of home heating
oil, natural gas, electricity and other energy supplies. Heating degree days
are up 30% over last year and 10% above the twenty-year average. Home heating
oil prices reached $1.70 and higher recently, more than 40% above last year’s
level. Natural gas prices will average one-third or more above last winter’s
levels, according to the federal Energy Information Administration. While electricity
prices are more stable, household budgets are strained by the sharp increases
in other energy prices and the record cold.
SB 105 will have an important moderating effect on electricity prices over
the long term. By reducing the consumption of and demand for electricity, fewer
new power plants will need to be constructed and existing plants that are more
costly to operate will be run less. All of this translates into lower prices
for consumers. But the consumers who experience the most benefit are those low-income
households who struggle the hardest to keep up with their bills. The typical
household energy burden of low-income families in the northeast averages between
15% to 20%, depending on the actual prices and temperatures in any given year.
This is an extraordinary burden and explains why so many households are terminated
for non-payment. SB 105, while no panacea, will help ameliorate the energy burden
of low-income households.
Finally, SB 105 will not burden low-income households. Most of the covered
products are for commercial use, purchased by businesses that will reap direct
savings over the entire useful life of the products. Almost all of the covered
products yield energy savings that pay back any increased initial purchase price
in one to two years. But low-income households, like all households in New Hampshire,
will benefit from lower energy consumption and lower peak demands. In a state
and region with above-average energy costs, installation of more energy efficient
appliances is a win-win situation for all. It is worth noting that in a recent
appliance efficiency standards proceeding before the federal Department of Energy,
the Environmental Protection Agency supported higher energy efficiency standards
not only because of the reduced air pollution, but also for the reasons just
noted: that low-income people stand to benefit the most from lower demands on
our electrical generating system.
This is why NCLC so strongly supports the bill. We hope this committee will
favorably report the bill soon.
