at Plain Green Conference 2008

1. Gary Hanson
South Dakota Public Utilities Commission
Efficiency
The Need For Green
September 26, 2008
Sioux Falls

2. NASA, ESA

3. High Utility Costs
Dramatically Affect Families
Percent of after tax Household Income spent for Utilities & Transporta
SD PUC - Americans for Balanced Energy Choices / EIA

4. SD.PUC

5. Electric Capacity Challenges
SD.PUC

6. Electric Capacity Challenges
 Costs of fossil fuels increasing & volatile
SD.PUC

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

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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 1. Heating -
2. Electric Capacity -
3. Transportation -
SD PUC

18. Multiple Energy Issues
1. Heating -
2. Electric Capacity -
3. Transportation -
SD PUC

19. Multiple Energy Issues
1. Heating - Natural Gas
2. Electric Capacity - Coal, NG, Nuclear
3. Transportation - Petroleum
SD PUC

20. Multiple Energy Issues
1. Heating - Natural Gas
2. Electric Capacity - Coal, NG, Nuclear
3. Transportation - Petroleum
4. Solutions must be environmentally
and economically prudent.
SD PUC

21. No Single Answer
SD PUC

22. No Single Answer
However, Efficiency can and must be an
integral part of the solution to each of
the challenges.
SD PUC

23. 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

24. 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

25. Electric Generation Sources
SD.PUC
Coal Petroleum Natural Gas Nuclear Hydro
Non-Hydro Renewables Other

26. 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

27. THANK YOU!
Gary Hanson
puc.sd.gov
Public Utilities Commission ● 500 E. Capitol Ave. ● Pierre, SD 57501

28. South Dakota PUC’s
Energy 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