As the new home of WashPIRG's environmental work, Environment Washington can be contacted regarding this news release.
Seattle—Washington’s
increasing dependence on natural gas will leave consumers and the state susceptible
to steadily rising electricity prices, mixed with periodic price spikes, and
an unstable energy supply, according to a new report by the Washington Public
Interest Research Group Foundation (WashPIRG Foundation). The report, Predictably
Unpredictable: Volatility in Future Energy Supply and Price from Over-Dependence
on Natural Gas, shows that energy efficiency measures can reduce
the state’s need for electricity and its vulnerability to unstable electricity
prices and natural gas supply, while renewable energy can provide electricity
at low and stable prices. This January, the Washington State Legislature will
be considering a bill that would increase the use of efficiency and renewable
energy to meet our future energy needs, moving us towards a more reliable and
stable energy supply.
"Washington’s
growing dependence on natural gas is putting our state in a predictably unpredictable
situation," said WashPIRG Field Organizer Aisling Kerins. "While our
demand for natural gas is skyrocketing, our domestic supply is dwindling, and
we’re bound to face more shortages and price spikes similar to what we
saw in 2001."
Specifically the report found:
• Washington utilities’
use of natural gas for electricity generation increased sevenfold from 1999
to 2001. In that time, utilities and industrial users added thirteen new natural
gas power plants.
• Over 90 percent
of new centralized energy production currently under development will come
from natural gas, nearly doubling the percentage of Washington’s electricity
generated from natural gas from 13 percent to 24 percent. Only one percent
of the state’s electric power comes from clean, non-hydro renewable resources—solar
and wind.
• Nationally, if
demand growth and import levels follow current trends the predicted domestic
supply of natural gas will be consumed by 2040.
• There are 2.5 times
as many natural gas wells in the U.S. today as there were in 1973, but each
well is producing only a third as much gas.
We will need to drill new
gas wells to meet growing demand, but many of the new wells will be tapping
into reserves that are more difficult and costly to reach than those that have
already been excavated, and are in areas that should be protected for their
environmental value.
As domestic reserves decrease,
the U.S. will be forced to increasingly rely on expensive and uncertain foreign
supplies. The Department of Energy estimates that overseas imports will increase
by 11 percent annually from 2001 to 2025. Gas imported from overseas must be
turned into a liquid by cooling it for shipping, and this process is prohibitively
expensive at today’s price. Years ago oil companies were forced to close
two of the country’s four receiving facilities because of the high costs
of importing, but now companies are responding to expected increases in gas
prices by re-opening those facilities and proposing new ones.
Washington will face additional,
unique problems by relying on natural gas. As none of the nation’s gas
supply is in Washington, our state may have to pay a premium to secure supplies.
All of the gas consumed in Washington is imported from outside the state. This
means that if demand, and prices, rise in California or elsewhere, Washington
will be exposed to those price fluctuations. Natural gas prices have soared
to $6 per thousand cubic feet this year, twice the price of a year ago.
"This isn’t rocket
science—increasing energy efficiency and renewable energy production will,
over the long term, help to stabilize energy prices in Washington," said
Kerins. "We can’t depend on natural gas to meet our future energy
demand."
There are clearly many problems
with Washington’s growing dependence on natural gas, and state policy makers
would be wise to look at alternatives. The report found that combining energy
efficiency measures with renewable energy provides a real energy alternative
for Washington’s future.
• With renewed investment
in efficiency, Washington could achieve savings equal to 12 percent of current
electricity use by 2010 and 24 percent by 2020.
• Renewable energy
can provide electricity at low, stable prices because renewable energy does
not rely on fuel. Once plants are built, producers simply have to pay regular
operating and management costs.
• Both wind and solar
energy costs have plummeted over the last twenty years and are predicted to
continue declining.
• Washington has
tremendous potential to produce renewable energy in-state, keeping energy
dollars in-state rather going to out-of-state gas suppliers.
Based on the findings of
the report, WashPIRG recommends the following policies to promote a stable and
affordable energy supply:
• The state should
stop Washington’s move toward greater dependence on natural gas and not
grant approval to any more natural gas power plants.
• The state should
require all utilities doing business in the state to meet a percentage of
future power needs with energy conservation.
• The state should require a minimum of 15 percent of electricity production
come from wind, solar, and non-hydro renewable sources by 2023.
• Tax incentives
should be given to consumers to encourage them to install efficient appliances.
Subsidies and incentives should also be given to renewable energy development.
