Mr. Kiesner

Eco-Friendly Practices

National Energy Bill Vital for America's Future

By Steve Kiesner, Director of National Accounts, Edison Electric Institute

But electricity, and indeed all energy, is something we can't take for granted. Although most people think about electricity only when they flip on the light switch, the U.S. electric system consists of a massive, interconnected network of generating plants, transmission lines, and distribution facilities.

Energy legislation is needed now to reinforce electric reliability, foster more efficient, competitive electric power markets, promote fuel diversity, and expand our energy supplies and production. At the same time, a national energy bill needs to stress efficiency and the wise use of existing resources. With electricity consumption expected to increase 49 percent between today and 2025, these supply and demand measures are the best long-term solutions for our energy future.

The electric power industry is not alone in seeking a comprehensive energy bill. A recent national poll showed that 87 percent of Americans favor it. Congress has been working on an energy bill for the past three years. Last fall it ended up two votes shy of sending a bill to President Bush. We encourage the hotel industry to voice its support this year for passage of a national energy bill.

Electricity Provisions

The August 2003 blackout dramatically illustrated the growing strain on our nation's electricity grid. The U.S. electric transmission grid consists of nearly 160,000 miles of high-voltage transmission lines. Transmission lines carry electricity from generating plants to areas where electricity is needed. In recent years, the number of transactions on the transmission grid has increased significantly to serve the growing demands for power. According to the Federal Energy Regulatory Commission, transmission bottlenecks cost consumers more than $1 billion over the past two summers alone.

The blackout has raised a lot of questions about what can be done to ensure electric reliability. EEI is recommending that energy legislation include the following components to address electric transmission needs:

Beyond containing these provisions for improving the nation's electricity transmission grid, EEI is also recommending that an energy bill promote a stable, diverse supply of energy resources for electric generation. Today, our economy relies more than ever on reliable, affordable supplies of electricity. The use of electricity has grown dramatically over the last 30 years and mirrors our nation's economic growth. As demand for electricity grows, new power plants that rely on a diversity of fuels will be needed to ensure adequate electricity supplies in the future.

Among the electric generation priorities for national legislation are to restore and expand tax credits for renewable energy resources, such as wind and solar. These all expired on January 1. Legislation also needs to encourage the development of new clean coal and nuclear power technologies, modernize the licensing process for hydroelectric plants, and promote the production of energy resources from areas already open to oil and natural gas production.

Natural Gas Provisions

The current natural gas infrastructure-transmission and distribution pipelines-must also be expanded to meet the growing demands for natural gas. The U.S. now relies on natural gas for one-quarter of its energy needs. Over the last decade, U.S. consumption of natural gas has increased by roughly 14 percent. Looking ahead, homes, businesses, industries, and electric power generators are projected to increase their combined consumption of natural gas 54 percent by 2025.

Natural gas moves through a nationwide network of 280,000 miles of transmission pipelines. Natural gas distribution utilities must construct more than 255,000 miles of new pipeline-enough to go roundtrip between New York and Los Angeles more than 50 times-in order to bring natural gas to consumers, according to the National Petroleum Council. This will expand the current distribution system by about 25 percent.

Along with strengthening our natural gas infrastructure, the nation needs to develop new North American supplies, especially in those areas that are currently restricted or off limits in the Rocky Mountains and the Atlantic and Pacific coastal areas.

Specifically, we're recommending that national energy legislation augment the country's natural gas supplies through the following:

Wise Use Assistance

Today, hotel executives can start to get more value from their energy dollars by working with their electricity provider. EEI encourages hotel managers to contact their electric company for cost-effective advice and assistance.

Electric companies typically offer free advice on using energy wisely, and many offer no- or low-cost programs that can help hotels take control over their energy use. These programs will have an impact on natural gas, as well as electricity use.

Some sample electric utility energy management programs include:

The time has come for a national energy policy. Our nation needs a solid, comprehensive energy policy that will ensure we have adequate, affordable, and reliable energy and electricity supplies to keep our economy growing. Congress should act to pass legislation now. America's electric companies encourage the nation's hotel executives to voice their support today.

Steve Kiesner is Director of the Edison Electric Institute’s National Accounts Program. Based in Washington, D.C., Edison Electric Institute (EEI) is the association of United States shareholder-owned electric companies, international affiliates and industry associates worldwide. Our U.S. members serve approximately 90 percent of the ultimate customers in the shareholder-owned segment of the industry, and nearly 70 percent of all electric utility ultimate customers in the nation. They generated almost 70 percent of the electricity generated by U.S. electric utilities. Mr. Kiesner can be contacted at 202-508-5000 or skiesner@eei.org Extended Bio...

HotelExecutive.com retains the copyright to the articles published in the Hotel Business Review. Articles cannot be republished without prior written consent by HotelExecutive.com.