Energy Efficiency Could Save Americans 1.2 Trillion Dollars

NEEP supports report on ramping up energy efficiency through regional
collaboration
LEXINGTON, Mass.--(Business Wire)--
As the Senate gears up to consider landmark climate and energy legislation in
the coming weeks, a new report [www.mckinsey.com/USenergyefficiency] released
this week concludes that elevating energy efficiency to a national priority
could save American consumers $1.2 trillion by 2020-about the same amount as the
projected 2009 Federal deficit.*1

In issuing its report, McKinsey & Co. state that energy efficiency is the
"single most promising resource" in pursuing energy affordability and security.
In addition to the tremendous savings to consumers and businesses, the report
finds that elevating energy efficiency to a national priority could also create
600,000-900,000 sustainable green jobs and reduce our overall energy consumption
by 23 percent - that`s equivalent to the total energy consumption of the entire
world for two weeks.

"The McKinsey & Co. Report released this week clearly illustrates the impact
that energy efficiency can have on the economy and on the country`s future
energy needs," says Susan Coakley, Executive Director of Northeast Energy
Efficiency Partnerships (NEEP). "While pursuing efficiency could save the
country over a trillion dollars, it is also important to remember that if we
don`t act now on a national and regional level, than our inaction could cost us
over a trillion dollars."

Through strategic regional coordination facilitated by organizations such as
Northeast Energy Efficiency Partnerships (NEEP), the Northeast region of the
U.S. is leading the way in energy efficiency as a cost-effective resource in
several ways:

* Savings from energy efficiency programs in Vermont, Massachusetts, Connecticut
and Rhode Island implemented since the 1990`s have completely or nearly offset
energy and load growth in those states in recent years at a fraction of the cost
of new supply (e.g., 3.5¢/kWh for efficiency vs. 13¢/kWh for new supply)
* Since 2004, northeast state adoption of state appliance efficiency standards
has paved the way to more than fifteen new federal appliance standards.
* Through strategic regional collaborations with industry, ratepayer-funded
efficiency programs have transformed the market for a wide range of products
(e.g., lighting, clothes washers, residential and commercial air conditioners) -
such that the northeast states lead in market share for more efficient products,
such as Energy Star and NEMA Premium.
* Most northeast states have adopted the recent national model building energy
code for new construction and agreed to strong enforcement. Massachusetts
recently adopted an optional "advanced" energy code thirty percent above the
national model code.

To track the impact of these programs and policies, the northeast states have
undertaken the nation`s first and only regional effort, the Regional Evaluation,
Measurement and Verification Forum, to consistently estimate, evaluate, verify
and report energy savings and other impacts (e.g., demand savings, procurement
costs, carbon emission reductions).

"Finding ways to improve efficiency is the smartest and most cost effective way
to do more with less," says Penni McLean Conner, NEEP Board President and
Vice-President of Customer Services at NSTAR Gas and Electric. "It is the result
of strong regional collaboration through NEEP that directs the national
spotlight on the Northeast as a model for energy efficiency gains. The latest
McKinsey report justifies making energy efficiency a national priority, too."

"Energy efficiency is helping Vermont to do more by using less," noted Scott
Johnstone, NEEP Board member and Executive Director of Vermont Energy Investment
Corporation, host for Efficiency Vermont, Vermont`s statewide efficiency
utility. "Efficiency is the smartest way to cut our energy consumption and
jumpstart our transition to a sustainable green economy. A national effort as
recommended by the McKinsey report will help us achieve this faster with even
more savings."

"In 2008, NYSERDA`s energy efficiency programs provided New York energy
consumers over $600 million in savings on their annual utility bills," says
Francis J. Murray, a NEEP Board member and President of the New York Energy
Research and Development Authority (NYSERDA). "Under the leadership of Governor
David Paterson, New York State has established one of the most aggressive
efficiency targets in the nation. New York will reduce its projected energy
consumption 15% by the year 2015 by quadrupling its investment in energy
efficiency. A strong national effort, such as that recommended by the McKinsey
report, will provide additional resources to the states and make New York`s
lofty goal easier to attain."

The report by McKinsey & Co. can be downloaded from the company`s website, here:
http://www.mckinsey.com/clientservice/electricpowernaturalgas/US_energy_efficiency/

ABOUT NEEP

Northeast Energy Efficiency Partnerships (NEEP) is a regional nonprofit
organization founded in 1996 whose mission is to promote the efficient use of
energy in homes, buildings and industry in the Northeast U.S. through regionally
coordinated programs and policies that increase the use of energy efficient
products, services and practices, and that help achieve a cleaner environment
and a more reliable and affordable energy system. For more information, visit
www.neep.org.

*Congressional Budget Office, Annual Budget and Economic Outlook, 1/7/09. Please
note that $1.2 trillion is gross savings and does not take into account related
investments in energy efficiency.

NEEP
Carrie Nash, 781-860-9177 Ext. 125
Media Relations
cnash@neep.org
Web: www.neep.org

Copyright Business Wire 2009