MidAmerican Energy – dismantling energy efficiency program
MidAmerican is an investor owned utility owned by Berkshire Hathway/Warren Buffett serving several midwest states.
MidAmerican recently filed its proposal for a state mandated energy efficiency program in the state of Iowa. Nice glossy brochure, but the last page reveals its proposal to reduce the budget for energy efficiency by 40%, from $116 million to $71 million.
Last night, the company’s director of energy efficiency met with a local group to answer questions. I am not an expert but have read GBA for several years and highly retrofitted my own house. A few main points.
First, the representative said that replacing a highly efficient furnace with an even more efficient furnace is not cost effective. I chimed in that is correct, a better choice might be to air seal and insulate the attic. The representative asked if air sealing meant replacing windows or sealing ducts. The representative was not familiar with the term air sealing, despite being head of energy efficiency for a major utility.
Another tidbit, the company wants to exempt the 17 largest customers from paying any energy efficiency program fees. More subsidies for the richest companies, who already move to the state because taxpayers heavily subsidize wind power.
MidAmerican touts its goal to have electricity generated by 100% renewables. By building more wind turbines instead of reducing the overall energy load, it expands its asset base, and earns its 11% return on investment, while also getting more wind turbine tax credits.
Just want to throw this out there in because I think it is an important news story.
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Replies
This is a private company that is given a monopoly and guaranteed a profit. A specific profit, of 11% of invested assets.
So legally, it cannot maximize profit, for good reason.
The guy got really confused when I mentioned highly efficient homes often use 100% electricity, no gas. He asked how we heat our homes. It was disheartening, that both the corporate guy, and the clean energy audience, did not have a better understanding of energy efficiency.
A private company is always going to prioritize its business objectives over everything else. But it is shocking that this "energy expert" is not better prepped for this type of discussion. Good job on holding him accountable.