Electric Co-op Today

A bipartisan group of lawmakers unveiled legislation Wednesday that relies on electric co-ops as the conduit for a nationwide energy-efficiency initiative.

Michael Couick of The Electric Cooperatives of South Carolina speaks at a Capitol Hill news conference on a nationwide energy-efficiency initiative. (Photo By: Steven Johnson)

The Rural Energy Savings Program Act would enable co-ops, with help from the Rural Utilities Service, to make low-interest loans of $1,500 to $7,000 for residential efficiency projects.

“The concept is very, very simple―low-cost home improvement loans for energy efficiency upgrades,” said House Majority Whip James E. Clyburn, D-S.C., at a Capitol Hill news conference. “It will save consumers energy and money, and it will put people back to work.”

Clyburn and Sen. Lindsey Graham, R-S.C., who are among House and Senate sponsors, said the program, which would cost about $1 billion over 10 years, is based on a model developed by The Electric Cooperatives of South Carolina that calls for consumers to repay loans through monthly charges on their bills.

“The money that we’ll make available will go to some of the most trusted people in co-ops,” Graham said. “The cost of this bill over a 10-year period is negligible to taxpayers, but the benefit to job creation is enormous.”

Supporters estimated that passage could add 26,000 jobs by 2012. An average loan of $3,000 would cover the efficiency needs of as many as 1.6 million households.

NRECA CEO Glenn English said the measure also could ease a looming crunch in electric power generation, while Congress is mired in a debate over the direction of federal energy policy.

“This program, if enacted, will eliminate the high upfront costs that have long been a barrier to investments in efficiency by low- and moderate-income Americans,” he said. “It’s good for our membership, and it’s good for our country, to make sure we are getting the maximum we can out of our electric power generation.”

Tags: Efficiency and Conservation, Legislation, Rural Utilities Service