Baltimore Gas and Electric tests efficiency programs

Dennis and Bonnie Cardarelli are a part of one of Baltimore Gas and Electric’s (BGE) new energy efficiency programs.  The program is designed to encourage its customers to conserve energy during times of peak use.

The project is running through the summer to get ready for new pricing policies throughout BGE’s service area.  Different prices will be charged at different times of the day, based upon the current demand for power.  It is most critical for BGE to reduce power consumption during the afternoons of the hottest days in the summer.
“We turn things off.  You don’t even miss it,” said Mrs. Cardarelli.  “We were surprised all the things we could turn off and still be comfortable.”

The Cardarellis have also turned up their thermostat a few degrees during the dog days of summer and have learned to wait until off-peak times to take a shower since they have an electric water heater.

BGE has implemented several options during the pilot project and two different pricing methods: “peak-time rebate” where ratepayers generate a rebate on their monthly bill for conserving energy during times of critical demand and “dynamic peak pricing” where higher rates are charged for energy used during times of peak demand.

Some consumer watchdog groups are wary that the implementation of variable pricing plans will increase the cost of energy to particularly sensitive customers such as those who are homebound and rely on medical equipment for their health.  Other groups would like to see more funding going towards upgrades for the home that increase energy efficiency.

“Consumers are well aware of high prices.  People already understand the more energy you use the higher your bill will be,” said Tyson Slocum of the Public Citizen’s Energy Forum watchdog group.  “They are already cutting back.  They need a robust program of incentives for renewable energy and improvements.”

The Cardarellis are enrolled in the rebate pilot program and are very enthusiastic about the results.  “So far we’ve saved $341!” exclaimed Mr. Cardarelli.  “That’s something.”

Certainly the Cardarellis are using less energy now than they were before which is the goal of any energy conservation program.  BGE calculated that the Cardarellis would normally use about 41 kilowatts of energy between the hours of 2 and 7pm.  

Now that the Cardarellis are warned by the red or yellow light their energy consumption has been reduced below 10 kilowatts and to as low as 3 kilowatts.  The project has demonstrated that given the opportunity to save money consumers will alter their energy consumption patterns even with the simplest of notification methods.

Utilities throughout the United States are evaluating these programs and several have similar projects in place.

Maryland Governor Martin O’Malley signed legislation earlier this year that requires utilities to play a part in reducing energy consumption by 15 percent by the year 2015 and to pay special attention on reducing peak energy consumption.

If the state can reach these goals than dirty power plants that are damaging to the environment won’t have to be built.

An essential part of the future efficiency efforts is the smart meter that when installed establishes communications between BGE and its customers.  BGE is currently testing the smart meters for use throughout their service area.  These meters use wireless communications to send consumption data back and forth between customers and BGE each hour.

Customers will also be able to monitor their energy consumption information over the Internet.

The smart meter pilot project was introduced to Baltimore and Westminster in July and will last through November.

Baltimore Gas & Electric
750 E. Pratt St.
Baltimore, MD 21202
http://www.bge.com