Commonwealth Conversations: Energy Smarts

What makes up my electric bill?

David Cash

Commissioner, Department of Public Utilities (DPU)

View David's Complete Bio

Ever wonder what you’re paying for every month when you get your bill?  There are basically four parts of your electric bill. 

1. The Commodity used to make the electricity (Blue).  The commodity - natural gas, coal, or oil - that is used in power plants to make your electricity. This is by far the biggest part of your bill, and here in Massachusetts, where we are at the end of the energy pipeline, we are at the mercy of global energy prices.  See in the graph how the blue part, the Commodity, is volatile?  In 2005, when Hurricane Katrina hit, knocking out natural gas pipelines, the price of natural gas shot up, and so did our electricity rates.  Since we don’t have any coal, oil, or natural gas in Massachusetts, we have two ways we can reduce that blue part. We can ramp up energy efficiency and develop more homegrown renewable energy like solar and wind.  Both of these efforts have been priorities of the Patrick-Murray Administration, and this year, for the first time, Massachusetts is #1 in the country in energy efficiency beating out California.

2. The Distribution charge (Purple):  This is what it costs for your electric company to deliver the electricity to your house – the wires, substations, repair trucks, etc.  This is the only portion of your bill that the state directly regulates.  The Department of Public Utilities closely regulates the utilities and makes sure that what it charges for this portion is fair and reasonable.  This is also the portion of the bill in which there are charges to invest in the state’s energy efficiency and renewable energy programs.  For every dollar that is invested in all these programs, we get two dollars in savings!   And remember, these are how we reduce our dependence on fossil fuels that come from outside of Massachusetts.  Notice that the graph shows that this part of the bill has been relatively stable in the last decade – even with new energy efficiency and renewable investments.  

3. Transmission charge (Green):  This portion of the bill pays for the big interstate transmission wires that make up the backbone of the electric grid.  This is regulated by the federal government.

4. Transition charge (Red):  This is a leftover charge from when the state’s electricity system was restructured in the late 1990’s.  This charge will soon disappear.

A year in review…the clean energy revolution continues

Mark Sylvia

Commissioner, Department of Energy Resources (DOER)

View Mark's Bio

This week, President Obama and Governor Patrick both confirmed their visions for our clean energy future. In the State of the Union speech, the President talked about the “promise of clean energy,” and said “nowhere is the promise of innovation greater than in American-made energy.” In the Governor’s State of the Commonwealth address, he brought it home, reminding us that the Green Communities Act fundamentally shifted our state’s energy focus toward efficiency and renewable energy.  

Our nation-leading energy policies are producing results across the board.  Massachusetts citizens, businesses, state entities, and local governments - including 86 designated Green Communities - are taking advantage of the economic and environmental rewards of investing in energy efficiency and renewable energy. We’re creating clean energy jobs, reducing municipal operating costs, using less energy and adding cleaner energy. And we’ve received national recognition for our efforts.

Take a look at the advances in our energy agenda from last year (for the best view press play, click 'More' and view 'Fullscreen'). 

You can also view the Massachusetts 2011 Clean Energy Year In Review on this site or you can download 2011 Massachusetts Clean Energy Year in Review.

Under Governor Patrick’s leadership and support of renewable energy, the clean energy industry grew nearly 7 percent in Massachusetts last year, and added thousands of jobs. We’ve added tens of thousands of kilowatts of renewable generation – enough to power over 25,000 households – since 2007.  

This past fall, Massachusetts was ranked as the No. 1 state in the nation for energy efficiency by the American Council for an Energy-Efficient Economy (ACEEE) for “excelling in every aspect of energy efficiency” and continuing “the implementation of the 2008 Green Communities Act.” Massachusetts’ success in renewable energy was also underlined in the fall, when Governor Patrick was awarded the Solar Champion Award by the Solar Energy Industry Association. 

None of our success would be possible without the hard work of the more than 63,000 people working in 4,900 Massachusetts clean energy companies, weatherizing homes, designing energy efficient buildings, installing solar panels for electricity or heating, and tuning up high efficiency furnaces. It also wouldn’t be possible if homeowners, renters, landlords, business owners and municipal leaders didn’t see the benefit of investing in energy improvements that provide savings and value today, and well into the future.

It’s been a thrilling first year as commissioner and I look forward to continuing my work with you as we create a cleaner energy future together. 

More winter energy savings tips

Susan S. Kaplan

Marketing & Outreach Coordinator, Department of Energy Resources

View Susan's Complete Bio

With winter drawing to a close we’re bound to get some end of season cold snaps before we get to spring. Sign up to follow our Energy Smarts Twitter feed at @maenergysmarts for tips on how to save energy this winter. Here are some more tips.

1. Don’t open your oven door when cooking. Instead, turn on the oven light and gaze through the oven door window.

2.  If you use glass or ceramic pans, you can turn your oven temperature down 25 degrees and foods will cook just as quickly.

3. When cooking on top of your range, match the size of the pan to the heating element. A six-inch pan on an eight-inch burner will waste more than 40 percent of the energy!

4. Dispose of older incandescent lights and buy new LED holiday lights. Older strings of incandescent holiday lights can use up to 99 percent more energy than new LED light strings.

5. Replace your old heating system and cut your natural gas use nearly in half

6. Open south-facing window curtains, drapes and blinds during the day. Close window coverings at night to keep the heat in.

7. Get a humidifier to add moisture to the air. Moister air feels warmer, letting you set your thermostat at a lower temperature.

Energy By the Numbers: 72

Dan Burgess

Clean Energy Fellow, Department of Energy Resources

View Dan's Complete Bio

Five years ago, Massachusetts had just 3.5 megawatts (MW) of solar power installed. Today, thanks to the leadership of the Patrick-Murray Administration, there are now 72 MW of solar power capacity installed in Massachusetts - enough to power 12,264 homes for a year.

The Commonwealth initiated its first program for solar PV rebates and partnerships in 2001, funded through a small renewable energy charge on electric utility bills.  But solar really took off when, in April 2007, when Governor Patrick announced a goal of 250 MW of installed solar power by 2017 and launched the Commonwealth Solar (CommSolar) program in January 2008.

With installations in 328 cities and towns across the state, this twenty fold increase in solar capacity since January of 2007 highlights the Administration’s commitment to creating a cleaner energy future for the Commonwealth. Investing in clean, healthy, and homegrown energy sources is a vital component of this future as Massachusetts is at the end of the energy pipeline.

Of the $22 billion the Commonwealth spends annually to buy the energy that runs its power plants, buildings and vehicles, 80 percent flows out of state to purchase coal from Colombia, oil from Venezuela, and natural gas and oil from the Middle East and Canada. That’s nearly $18 billion in lost economic opportunity that Massachusetts stands poised to reclaim through investments in home-grown renewable energy and energy efficiency.

Making solar a cornerstone of the Commonwealth’s clean energy economy has created a vibrant industry. In 2007, just 50 solar installers were doing business in Massachusetts, while today there are more than 250 solar installers. Solar energy is the most prominent renewable energy technology area for Massachusetts clean energy companies, with more than two in three renewable energy employers working with solar energy technologies.

For more information about solar power in Massachusetts, visit the Department of Energy Resources or the Massachusetts Clean Energy Center. You can also see how the Commonwealth is progressing towards meeting its ambitious renewable energy goals on the Renewable Energy Snapshot.

Energy efficient lighting project will save $4 million

Secretary Richard K. Sullivan Jr.

Secretary, Executive Office of Energy and Environmental Affairs
Executive Office of Energy and Environmental Affairs

View Secretary Sullivan's Bio

One of the things I’m focused on is reducing energy use at state facilities. By investing in energy efficiency, the Patrick-Murray Administration hopes to not only cut long-term energy costs and protect our environment, but also inspire municipal governments, businesses and residents to make the same types of investments.

This past November at the MBTA’s Alewife Garage and T stop in Cambridge, I joined state transportation officials in announcing an energy efficient lighting program that will save $4 million over the lifetime of the equipment installed in energy costs, reduce negative environmental impacts and make public parking garages safer and better lit. The Commonwealth expects to earn back its $1 million investment through energy cost savings in less than two and a half years.

The energy efficient lighting project will replace 87 percent of the total fixtures at the Alewife Garage, which is also home to several other energy saving components such as electric vehicle charging stations, bike cages for commuters, and extensive natural lighting.

Energy efficiency retrofits are planned at more than 35 state facilities across the Commonwealth, including other MBTA garages and parking lots, and are expected to generate an annual savings of 3.5 million kilowatt hours and 1,300 tons in greenhouse gas emissions. Other projects planned under this program will take place at MBTA sites in Newton, Needham, Charlestown, Hyde Park, and Norfolk, among others. Funds have also been allocated to projects at Massachusetts Department of Transportation (MassDOT) Highway Division and other state facilities. 

The project is part of a partnership among MassDOT, the Massachusetts Recovery and Reinvestment Office, the Department of Energy Resources (DOER), the Massachusetts Clean Energy Center (MassCEC) and the MBTA.

DOER, with the Massachusetts Clean Energy Center, is allocating $1 million in funds from the American Reinvestment and Recovery Act of 2009 (ARRA) for the program, which will leverage $900,000 in additional efficiency rebates from NSTAR.

Local companies are also benefiting from this program. Products from Massachusetts companies such as Osram Sylvania of Danvers and Renova Lighting of Mansfield are being used in several projects. These projects are also creating jobs across the Commonwealth for local electricians and contractors. In fact, over 6,100 clean energy and environment sector workers in Massachusetts have received paychecks as a direct result of ARRA since the state’s Stimulus investments began in 2009.

ARRA 101: Old Mill, New Purpose

Dan Burgess

Clean Energy Fellow, Department of Energy Resources

View Dan's Complete Bio

Old brick mill complexes are abundant along major rivers in New England.  These historic buildings, once major hubs of manufacturing, often sit empty for years as it can be difficult for property owners to establish contemporary building uses. In Lawrence, a community-based development group called Lawrence CommunityWorks (LCW) took this issue head on. In the process, LCW is providing an example for other communities in the region and across the country to use energy efficient rebuilding methods.

LCW is a community-based development group that is working with local, state, and federal agencies, several business interests, and hundreds of community members to revitalize and repurpose a complex of 19th century textile mill buildings along the Merrimack River into housing and business space, now named Union Crossing.

The Patrick-Murray Administration has invested over $7 million in affordable housing grants and tax credits in this innovative project – including $550,000 from the American Recovery and Reinvestment Act of 2009 (ARRA) allocated by the Department of Energy Resources’ (DOER) High Performance Buildings program. Other finacial support for the project came from a Brownfields grant from MassDevelopment and from the Executive Office of Housing and Economic Development and the Department of Housing and Community Development. ARRA funds were used by LCW to buy energy efficient windows that are historically sensitive to the mill’s original structure. 

 

Phase I of this project was just recently completed. At the ribbon cutting, stakeholders lauded the project for creating 350 construction jobs, 60 units of affordable and energy efficient family rental units, and new commercial and green space for the community. 

Union Crossing is another in a long line of projects that benefitted tremendously from the Patrick-Murray Administration’s stimulus find investments in Massachusetts. It is also a strong example of the impact committed citizens can have in their communities. Congratulations to all involved with the Union Crossing Phase I completion!