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The American Energy Consumer
These are
national concerns, requiring much more attention and enforcement
than individual agencies such as the Department of Justice, HUD,
the United States Civil Rights Commission, or the Environmental
Protection Agency have used or possess. Additional and present
legislation should give federal agencies monitoring and action
power enough to improve the environment for all citizens and to
remove housing and land use barriers that discriminate. Enough
funds should be appropriated for investigation and regular review,
and there should be stiff sanctions.
Support
vigorously the National Conference for Building Codes and Standards
(a state oriented organization) in bringing about standard building
codes, especially the suggested "Standard for Energy Conservation
in Buildings." More federal responsibility and involvement than
has yet taken place must occur in helping states to put together
statewide performance building codes. Many of such codes recently
have preempted local codes with good results. Improved statewide
codes protect consumers better than local codes and help builders
to comply with specifications. State codes require that buildings
meet certain standards of performance, whereas many local codes are
so specific about materials and methods that they are confusing,
expensive, or overlooked.
RECOMMENDATIONS TO IMPROVE ENERGY
EFFICIENCY AND EQUITY
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Require
that state public utility commissions introduce a flat rate
structure supplemented by a system of peak load pricing for
electricity, as a matter of equity and national energy
conservation. The price consumers pay for household
energy—all the bills from electric and gas
companies—represent, chiefly, the economic costs of producing
and distributing energy and of attacking the resulting pollution.
These are legitimate costs and must be paid. The major issue for
energy policy is whether the way the costs are paid is equitable
and contributes to environmental improvement.
This book
has shown that small users—usually poor and lower middle
income households—pay more per unit than large users, and
that the gap has been widening over the past two decades. Under
these conditions, the poor and lower middle are probably using less
energy than they might otherwise, and the rich are using more. A
flat rate would cause electricity and natural gas to be sold like
gasoline and most other products, at a constant price per unit.
This serves the goal of equity as well as conservation by
eliminating the reward of lower and lower prices to consumers who
use more and more.
Peak load
pricing would make electricity costlier at times of highest demand,
preferably by the time of day or day of the week. Higher prices at
peak demand would tend to reduce electricity requirements at peak
hours, whatever the season. This would reduce the need for power
plants. Costs would be held down and savings passed along to
customers.