As Downey noted, the power industry has, since the 1980s, dramatically reduced the mandated pollutants. By 2010, every significant coal plant in the United States will be retro-fitted with state-of-the-art equipment. Although the mandated pollutants have been largely controlled, the EPA is in the process of attempting to re-establish the grading system.
“We will not be in attainment when they revise the scorecard,” said Downey, “and I think that is a concern that all of us have at a policy level because it means enormous investment required by all sorts of industries, from the gas pump to the major manufacturers.”
As Mike Deggendorf affirmed, the debate is complicated because in order to meet the growing demand, power companies have got to build more capacity.
If there is a way that consumers could maintain the lifestyle that they enjoy and yet use energy more efficiently, and if power producers could create comparably cost-effective alternatives that build more capacity and that do address the concerns around air quality, that, said Deggendorf, “seems like one of the first thingsyou would want to do.”
Local Initiatives
Moving from global concerns, Bill Downey asked what local initiatives are now in process to use energy more efficiently.
Steve McDowell commended the “great initiative” that KCP&L had started in terms of investing in its customers’ technology. “That’s just beginning to really take off,” said McDowell.
McDowell also cited those companies that are looking at ways to make environments which are more adaptable, which use daylight better, which are healthier, and which have better air control. Although cost savings drive some decisions, McDowell believes that “many employers are [adapting] because they know it’s the right thing to do for people inside the buildings.”
At the school level, observed Bob Courtney, “Trends start from the grassroots up. I am seeing more of a trend where it is politically correct to do energy efficiency.”
Courtney noted that the Olathe School District program started with two basic premises: “You control the thermostat setting and you control the run time.” In the first year of Olathe’s energy program, the district dropped its electrical consumption by 17 per-cent. “Those are almost no-cost items,” he added. “So when you talk energy efficiency, that is very doable.”
“One of the things that we are doing is we are auditing every single building and we are beginning a complete recommissioning,” said Gary Schlotzhauer. “It goes back to thermostats, run times, and educating the operating folks how to run a building.”
The Role of the Power Company
“Your role is significant because you have a tremendous amount of political capital,” said Jason Holsman. He observed that his fellow legislators are much quicker to back “progressive” energy bills if they believe that the power companies will support it.
Gary Schlotzhauer identified two key players in the local market: bus-iness leaders and KCP&L. He believes that the more insightful people in this market are making decisions now to move us ahead in terms of energy efficiency. KCP&L, he contended, is “definitely on the forefront of that.”
David Warm affirmed that KCP&L has demonstrated extraordinary creativity and resolve in providing cheap and available power, and in doing it in a way that is environmentally sensitive, given the technologies and the market. He cited wind farmsand retro-fitting as examples of environmental sensitivity.
“That kind of cultural attitude, corporate leadership, that approach to governing this company is at the end of the day what is going to matter,” he added.
Mike Deggendorf believes that there is a role that the utility plays in educating customers in the area of energy efficiency as well as in making it easier for customers to adopt more efficient practices. “There is a trust factor there for most utilities with their customers,” he added.
Adaptations
Bill Downey questioned whether all school districts were as energy conscious as Olathe’s.
Bob Courtney acknowledged a growing awareness of the issue, and a good deal of information sharing, among the thirty or so participants in the bi-state Midwest Energy Managers Organization.
“Energy conservation isn’t always a big factor with the decision makers in the school district,” Courtney added. “But it is for the kids.”
Among commercial property owners, there seems to be increased awareness as well. Although Gary Schlotzhauer could not testify to the same industry wide, he saw a nearly complete retrofitting among the properties he oversees.
Courtney sees the marriage of short-term projects, in which the payback is quick, with long-term adaptations as a viable way to proceed.
“I would think there is a large portfolio of buildings out there that people aren’t acting on,” cautioned Steve McDowell. “But I think as time goes on we will probably see actions start to take place.” McDowell noted too that almost all progress in this regard, especially among the less affluent, depends on a strong economy.
Responsibilities
The question was posed to Bill Downey as to how he convinces KCP&L’s shareholders that it is in the company’s best business interest to discourage energy consumption.
“Don’t misunderstand,” said Down-ey. “Our shareholders are the boss.” He explained that the company had to have a sustainable business model that addresses all of the variables.
“You can’t leave out any side of that equation for very long without stumbling as an organization or as an institution,” he continued. The company’s historic business has been to sell more kilowatt hours. If in fact that model changes, KCP&L has to find an alternate sustainable business model. That is one reason the company is in front of the legislature. There is a need to change rules on conservation investments.
“One of the big challenges for both political parties is for each of them to think more broadly,” he noted. One is all supply-oriented. One is all efficiency and environment-oriented. “This is a massive issue for everybody.”
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