Gary Hanson

South Dakota Public Utilities Commission

EfficiencyThe Need For Green

September 26, 2008Sioux Falls

NASA, ESA

High Utility Costs Dramatically Affect Families

Percent of after tax Household Income spent for Utilities & Transportation - 2007

SD PUC - Americans for Balanced Energy Choices / EIA

SD.PUC

Electric Capacity Challenges

SD.PUC

Electric Capacity Challenges Costs of fossil fuels increasing & volatile

SD.PUC

Electric Capacity Challenges Costs of fossil fuels increasing & volatile U.S. Energy use increasing significantly

SD.PUC

Electric Capacity Challenges Costs of fossil fuels increasing & volatile U.S. Energy use increasing significantly Retiring some electrical generation

SD.PUC

Electric Capacity Challenges Costs of fossil fuels increasing & volatile U.S. Energy use increasing significantly Retiring some electrical generation Capital costs increasing dramatically

SD.PUC

Electric Capacity Challenges Costs of fossil fuels increasing & volatile U.S. Energy use increasing significantly Retiring some electrical generation Capital costs increasing dramatically Investment has been lagging

SD.PUC

Electric Capacity Challenges Costs of fossil fuels increasing & volatile U.S. Energy use increasing significantly Retiring some electrical generation Capital costs increasing dramatically Investment has been lagging Deregulation rate caps

SD.PUC

Electric Capacity Challenges Costs of fossil fuels increasing & volatile U.S. Energy use increasing significantly Retiring some electrical generation Capital costs increasing dramatically Investment has been lagging Deregulation rate caps Transmission constraints and pricing

uncertainty

SD.PUC

Electric Capacity Challenges Costs of fossil fuels increasing & volatile U.S. Energy use increasing significantly Retiring some electrical generation Capital costs increasing dramatically Investment has been lagging Deregulation rate caps Transmission constraints and pricing

uncertainty Energy security is constricting fuel supplies

SD.PUC

Electric Capacity Challenges Costs of fossil fuels increasing & volatile U.S. Energy use increasing significantly Retiring some electrical generation Capital costs increasing dramatically Investment has been lagging Deregulation rate caps Transmission constraints and pricing

uncertainty Energy security is constricting fuel supplies Environmental awareness is increasing

SD.PUC

Electric Capacity Challenges Costs of fossil fuels increasing & volatile U.S. Energy use increasing significantly Retiring some electrical generation Capital costs increasing dramatically Investment has been lagging Deregulation rate caps Transmission constraints and pricing

uncertainty Energy security is constricting fuel supplies Environmental awareness is increasing Regulation has been schizophrenic

SD.PUC

Electric Capacity Challenges Costs of fossil fuels increasing & volatile U.S. Energy use increasing significantly Retiring some electrical generation Capital costs increasing dramatically Investment has been lagging Deregulation rate caps Transmission constraints and pricing

uncertainty Energy security is constricting fuel supplies Environmental awareness is increasing Regulation has been schizophrenic Protracted siting/permitting processes

SD.PUC

SD PUC

1. Heating -2. Electric Capacity -3. Transportation -

Multiple Energy Issues

SD PUC

1. Heating -2. Electric Capacity -3. Transportation -

Multiple Energy Issues

SD PUC

1. Heating -2. Electric Capacity -3. Transportation -

Natural GasCoal, NG, NuclearPetroleum

Multiple Energy Issues

4. Solutions must be environmentally and economically prudent.

SD PUC

1. Heating -2. Electric Capacity -3. Transportation -

Natural GasCoal, NG, NuclearPetroleum

No Single Answer

SD PUC

No Single Answer

However, Efficiency can and must be an integral part of the solution to each of the challenges.

SD PUC

No Single Answer

However, Efficiency can and must be an integral part of the solution to each of the challenges.

“The least expensive new electric capacity is the electric infrastructure we do not need to build”

SD PUC

No Single Answer

However, Efficiency can and must be an integral part of the solution to each of the challenges.

“The least expensive new electric capacity is the electric infrastructure we do not need to build”

“The best source of new oil is the oil we do not consume.”

SD PUC

Coal Petroleum Natural Gas Nuclear HydroNon-Hydro Renewables Other

Electric Generation Sources

SD.PUC

Energy Efficiency

‘Is’ One of the Answers

Efficiency and conservation are the least expensive, easiest, and least controversial ways to reduce energy demand and energy expenses.

Additionally, reducing personal energy consumption is financially rewarding.

SD PUC

THANK YOU!

Public Utilities Commission ● 500 E. Capitol Ave. ● Pierre, SD 57501

Gary Hansonpuc.sd.gov

South Dakota PUC’sEnergy Smart

November, 2007 Purpose: To encourage South Dakotans to

use energy more efficiently – with the primary goals of achieving

economical and environmental benefits.

SD PUC