Study sees jobs if Tennessee cuts energy demand

By BILL POOVEY

CHATTANOOGA, Tenn.

An energy efficiency study shows that reducing Tennessee's projected 15 percent increase in residential, commercial and industrial power demand in the next two decades can create 21,500 jobs.

The study co-authored by Tennessee Valley Authority board appointee Marilyn A. Brown includes a Tennessee profile that shows the state has high residential demand compared to other states.

"Tennessee consumes proportionately more coal and nuclear energy than other states in the South," according to the Tennessee profile.

Stricter building codes, improved appliance standards and expanding the Weatherization Assistance Program are among the power-saving residential policies. Improving energy-savings features in commercial buildings, plant utility upgrades and improved combined heat and power policies are also on the to-do list.

Brown, Tennessee Business Leaders for a Clean Energy Economy co-founder Susan Richardson Williams and Applied Energy Conservation Systems President Steve O'Neil of Chattanooga discussed the Tennessee profile in a Monday conference call.

Williams said the Tennessee Valley has enjoyed below average power costs and there was "not a real need for consumers to become energy efficient." She said that is going to change due to population growth and increased demand.

The report says existing energy demand in Tennessee can be reduced by about 6 percent by 2020 and by about 12 percent in 2030, which would be equal to seven power plants.

Increasing energy efficiency would create 15,600 jobs by 2020 and another 5,900 jobs by 2030.

"It is also really important to look at the numbers of jobs," said Williams, a former Tennessee Valley Authority board member. "Look at what a clean energy economy can do for Tennessee."

The report bases its jobs prediction on an American Council for an Energy Efficient Economy formula that includes government stimulus spending on weatherization and state energy programs and hiring in jobs related to energy efficiency. The formula does not calculate a split between government and private-sector jobs.

Brown, who shared the 2007 Nobel prize for her climate change research, said Tennessee relies too much on electricity.

"Much more of the heating and cooling in Tennessee is done with electricity as opposed to other parts of the country," Brown said. "With electricity comes inefficiency."

She declined to comment about TVA.

O'Neil said businesses he has worked with are making power changes that reduce power costs by up to 25 percent "without replacing a whole lot of equipment" and the investment can be repaid in five years or less.

He said many projects are on a leasing program that can cost less than the amount of power cost savings.

"I'd like to see the state or government continue to offer low interest loans for energy," O'Neil said.