New bill pushes companies to use more renewable resources

N.C. legislation and loan programs are cushioning energy consumers from the worst effects of the economic downturn by requiring the energy industry to make long-term investments.

A 2007 N.C. Senate bill which requires privately owned utility providers to meet 12.5 percent of their energy needs through renewable sources by 2021 includes spending caps to prevent consumers from shouldering the extra costs of investment.

Scott Sutton spokesman for Progress Energy" said he thinks the bill will guard against any long-term losses associated with the volatile economy.

""The legislation provides a target we are trying to meet" and also provides a cost-recovery mechanism" he said.

Energy providers are facing an increased demand as well as higher energy costs, he said, making it even more important for Progress Energy to continue pursuing energy solutions that meet all the requirements of the bill.

Ed Finley, chairman of the N.C. Utilities Commission, said energy companies are finding it more difficult than they expected to comply with the spending limits.

Utility companies might face some difficulty in meeting the regulations without exceeding the bill's spending caps, he said.

What we're finding is that relatively speaking" the resources that the electrical utilities are finding available to them are expensive" Finley said.

What we're concerned about is avoiding reaching the caps before we reach the standards.""

In the meantime" private businesses are taking out loans to finance their own renewable energy projects. Increasing numbers are turning to government loans as commercial loan availability declines.

One option the Energy Improvement Loan Program is offered through the N.C. State Energy Office.

Starlette Brown spokeswoman for energy office" said the reliability and low interest rates of government loan programs such as the Energy Improvement Loan Program can offset the difficulty of getting commercial loans for expensive energy projects.

""Over the years" we will still have the money" Brown said, explaining that the funds are unlikely to run out.

Katie Shepherd, spokeswoman for N.C. GreenPower, a nonprofit  which collects voluntary contributions for renewable energy initiatives, said investments have remained steady.

Their clients include utility companies, energy businesses, non-energy businesses and individuals who are acknowledging that these investments need to continue regardless of cost.

Not only have more people moved into North Carolina" but they are using more energy and the average size of homes has grown over the past 30 years" Sutton said.

I think people understand that renewable energy is going to have to be a part of the energy mix.""



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