ChoosingourEnergyFutureConservation Law  Foundation Testimony

The Joint Committee on Telecommunications, U ili i d E

Caitlin Peale Sloanff

Utilities, and Energy

Staff Attorney, CLF Massachusettscpeale@clf.org

May 12, 2015

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AWinter Energy Crisis?A Winter Energy Crisis?

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Average Residential Customer Monthly Electric Bill in 2014, by State*(and rank of bill amount among 50 U.S. states and D.C.)

Source: Energy Information Administration*2014 retail electric prices and 2013 average electric consumption (most recent data)

$147.38 

$140.00

$160.00

$111.71

$99.52 $105.68 

$110.27  $110.96 $114.38 

$122.13 

$100 00

$120.00

$

$84.46 

$80.00

$100.00

$40.00

$60.00

$0.00

$20.00

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Average Residential Customer Electric Bill in 2014, by Region*Source: Energy Information Administration

*2014 retail electric prices and 2013 average electric consumption (most recent data)

$130.64

$164.41

West South Central

Pacific Noncontiguous

$128.01

$130.09

South Atlantic

East South Central

$115.45

$115.68

New England

Middle Atlantic

$102 62

$107.94

$111.71

M t i

West North Central

U.S. Total

$91 96

$99.67

$102.62

Pacific Contiguous

East North Central

Mountain

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$91.96

$0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 $180.00

Pacific Contiguous

18.00

ISO‐NE Wholesale Real‐Time Prices (LMPs, Internal Hub)Monthly Average

16.29

15.28

14.1813.84

14.00

16.00 2013/2014

2014/2015

9.85

12.67

10.00

12.00

hour

2014/2015

6.566.18

7.39

6 00

8.00

¢/kilowatt‐h

4.254.00

6.00

0.00

2.00

Dec. Jan. Feb. Mar. through 3/20 Winter (12/1 to 3/20)

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The Path ForwardThe Path Forward

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1.1.Strategic public investment in g pthe resource with the best rate 

f fof return for ratepayers:E Effi iEnergy Efficiency

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Source: ISO‐NE 2014 Energy Efficiency Forecast 8

2.2.Strategic public investment in g pelectric generation not tied to 

f l f lfossil fuel prices:R blRenewables

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Source: Mass Energy Consumers Alliance 

Percentage Change in Share of ISO‐NE Fuel Mix Winter 2015 vs. Winter 2014

December 1 ‐March 15, ISO‐NE Generation by Fuel Type

COAL

OIL

WIND

REFUSE

SOLAR

HYDRO

NUCLEAR

‐40% ‐20% 0% 20% 40% 60% 80%

GAS

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3.3.Encourage the electric and gas g g

markets to utilize the i f hinfrastructure we have now to 

meet peak gas demandmeet peak gas demand

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Source: ISO‐NE COO Report, April 10

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Source: ISO‐NE Regional Energy Outlook 2015

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4.4.Need for new gas infrastructure gnot yet demonstrated, but if it 

h ld b hoccurs, we should begin withll j t fi tsmall projects first

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5.5.While need is not in evidence, if new pipeline capacity is constructed do incrementalconstructed, do incremental expansion first and keep theexpansion first and keep the ratepayers from being stuck 

with the bill

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Source: Natural Gas Association

www.clf.orgwww.clf.org

Caitlin Peale SloanStaff Attorney CLF MassachusettsStaff Attorney, CLF Massachusetts

cpeale@clf.org

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