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Practical
Tips for Reducing Energy Costs
Energy costs include the following:
- Out-of-pocket costs: the money paid for electricity,
heating fuels, gasoline, etc.
- True costs: the air and water pollution, public
health risks, national security implications, energy supply vulnerabilities,
greenhouse gas emissions, and other impacts associated with reliance
on fossil fuels.
Knowing that the prices paid for fossil fuels do not reflect true
costs introduces a new dimension to energy-related decisions. Conserving
energy and increasing energy efficiency reduce all costs. However,
some money-saving options may actually increase the true costs borne
by Cape & Islands communities. And some pricier but cleaner
and green fuels and technologies may seem more affordable when reduced
emissions of harmful pollutants and greenhouse gases, as well as
other problems, are taken into account.
Cost-saving options and tips are introduced below.
- Saving Money: conservation and efficiency, consumer aggregation,
cleaner and green options, competitive power purchase
- Minimizing True
Costs: conservation and efficiency, cleaner and green
options
Saving Money
Energy costs are generally higher on Cape Cod, Martha’s
Vineyard, and Nantucket than elsewhere in Massachusetts and the rest
of the United States.
Conservation & Efficiency
The most effective ways to save money are by conserving energy and
becoming more energy efficient. These options reduce the amount of
fuel required to fulfill specific energy needs, making each energy
dollar go further.
LED traffic signals require
much less electricity than conventional incandescent bulbs,
last 10 times longer, and are more visible in direct sunlight.
Local towns are saving money, reducing harmful emissions,
and improving public safety by installing energy-efficient
traffic signals under a
program administered by the Cape Light Compact.
(Photo Source: Anglia Components, Ltd.)
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Using electricity and natural gas more wisely may also produce long-term
monetary savings by reducing the need for costly upgrades to energy
transmission and distribution infrastructure.N antucket consumers,
for example, are going to bear costs associated with installation
and operation of a second underwater cable to meet the island's burgeoning
demand for electricity.
Conservation & Efficiency
Tips
Consumer Aggregation
Banding with other consumers to increase purchasing power is another
effective money-saving option. As a municipal aggregator, the Cape
Light Compact sometimes offers Cape and Vineyard consumers a lower
price on electricity. On a smaller scale, members of the oil cooperative
offered by Cape & Islands Self-Reliance gain access to lower-priced
heating fuel.
Aggregation Tips
Cleaner & Green Options
In some instances, consumers can save money by relying
on cleaner and green energy options. For example, hybrid vehicles
make every gallon of gas go further and solar thermal heating systems
provide a rapid payback on installation costs, while solar photovoltaic
and wind energy systems can actually make the electric meter spin
backwards to reduce long-term out-of-pocket costs. Microturbines,
fuel cells, and other cleaner technologies can also represent cost-effective
energy solutions in small-scale, distributed applications.
Cleaner & Green Tips
for Saving Money
In other instances, getting cleaner and going green may be more expensive
in direct costs—but it will offset harmful emissions and otherwise
reduce indirect costs. Electricity consumers can pay a premium price
to purchase green power products based on wind, biomass, solar, and
small hydroelectric projects. On the Cape and Vineyard, biodiesel
is available thanks to market-building activities directed by Cape
& Islands Self-Reliance. This renewable, domestically produced
alternative can be used in conventional diesel cars and trucks, construction
equipment, boats, and home heating systems. It costs a little more
per gallon than regular diesel fuel, but consumers willing to pay
a higher price are helping reduce pollutant and greenhouse gas emissions
and decrease reliance on foreign sources of oil. More information
on the importance of cleaner and green options for minimizing true
costs is provided below.
Competitive Power Purchase
Knowing the “true cost” tradeoffs between cheaper and
more expensive electricity is critical because both dirty and green
options are available. Many local consumers will elect to save money
by purchasing power from the company offering the most competitive
rates. From a “true cost” perspective, the cheapest
options may not be the best ones. For example, the Brayton Point
Power Plant, located directly upwind of the Cape & Islands,
produces some of the cheapest electricity in New England. This facility,
largely fired by coal, is also high on the list of the worst polluters
in Massachusetts. Joining Brayton Point on the list is the Canal
Plant in Sandwich, which generates almost all of the electricity
consumed on Cape Cod, Martha’s Vineyard, and Nantucket. The
Canal Plant produces most of its power by burning high-sulfur fuel
oil because cleaner fuels are more expensive.
Power Supply Tips
Minimizing True Costs
Minimizing true costs is particularly important on Cape Cod, Martha’s
Vineyard, and Nantucket because residents inhabit coastal environments
downwind from major sources of pollution. Local adoption of conservation
and efficiency measures reduces the indirect costs that Cape &
Islands communities impose on themselves to satisfy their own energy
requirements.
Conservation & Efficiency Tips
However, regional demand for energy is growing—and it is projected
to increase substantially in years to come. Consistent conservation
gains and efficiency advances will be required just to keep pace
with demand growth and to maintain self-imposed true costs at a
baseline level. Choosing cleaner and green options can reduce these
costs by substituting renewables and other less harmful sources
for dirtier fuels. Shifting to cleaner options, developing local
renewables, and purchasing green power represent solutions for minimizing
self-imposed impacts on natural environments and local communities
in the face of growing regional energy needs.
Cleaner & Green Tips for Minimizing
True Costs
Last updated 11.17.05
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