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Executive Summary

A better electricity future is within our reach. By 2025, the United States has the ability to revamp its electricity system to:

• slash fossil fuel consumption
• reduce polluting carbon dioxide emissions by 47% (compared to "business as usual")
• save as much as $36 billion annually

A new analysis conducted by Synapse Energy Economics, Inc. for the state Public Interest Research Groups (PIRGs) - entitled "A Responsible Energy Future" - contrasts a "business as usual" view of the future based on projections from the U.S. Department of Energy with a "balanced" energy future in which renewable energy, energy efficiency and local generation of electricity play an increasing role in meeting the nation's electricity needs.

The balanced energy plan includes:

• Reducing the projected growth in electricity demand between 2001 and 2025 from 42 percent to 5 percent by employing cost-effective energy efficiency strategies identified in more than a half-dozen studies.
• Increasing generation from renewable energy from about 3 percent of total power generation in 2025 to 15 percent by taking advantage of the potential for development of wind and solar power, biomass energy and other renewable sources of energy.
• Taking greater advantage of opportunities for combined heat and power.

Employing these resources would allow for the retirement of many older coal and oil-fired power plants that account for a disproportionately large share of emissions of global warming gases and health-threatening pollutants, along with older nuclear plants that pose a threat to public health and safety. By employing such a balanced energy strategy, the U.S. could:

• Reduce fossil fuel consumption for electricity generation by 19 percent from 2001 levels by 2025, versus the 48 percent increase projected under a "business as usual" scenario.
• Reduce electric-sector emissions of global warming-inducing carbon dioxide by 21 percent below 2001 levels by 2025 - as opposed to the 50 percent increase projected under business as usual.
• Achieve a net annual economic benefit of $36 billion by 2025 through reduced need for investment in generation and transmission facilities and lower fuel costs. This estimate does not include savings associated with improved environmental and public health or economic benefits outside the electric sector.

Achieving the vision of a balanced energy future will require a shift in public policy. The National Association of State PIRGs' forthcoming report, "Toward a Consumer-Oriented Electric System" (to be published in August) details a number of policies that can help to realize this vision, including:

• Minimum requirements for renewable generation as a percentage of electricity use; ratepayer-financed programs to improve energy efficiency and support renewable power; and strong energy efficiency standards for buildings and equipment.
• Regulatory changes that remove incentives for utilities to sell more power to consumers; remove barriers to energy efficiency improvements and distributed generation; implement long-term planning to take advantage of the stability of renewable resources; and require the employment of cost-effective energy efficiency improvements wherever they are available.