Regional Cap-And-Trade Slashed Energy Use By $5 Million

Bill Rosgen / Flickr

Now in its second year, RGGI is saving millions of dollars in energy usage

The region’s controversial cap-and-trade system is working–at least as far as grant-funded energy cuts are concerned.  A new report released by UNH-based Carbon Solutions New England found that between the summers of 2010 and 2011, companies cut their emissions by 18,900 metric tons.  As David Brooks reports for the Nashua Telegraph:

“Grants from money paid by electric utilities as part of the Regional Greenhouse Gas Initiative…helped businesses reduce energy use by more than $5 million in the second year of the program, according to a new analysis…

For every dollar invested, the report said, there would be a return of $4.67 in energy savings over the lifetime of the projects: The lifetime savings from the $18.1 million spent from the fund are projected to be $84.5 million in energy costs based on current energy prices.”

As Brooks points out, RGGI has takes some heat at the statehouse,”because the cost of buying carbon-dioxide offsets is paid by utilities like PSNH, and thus helps raise electricity rates.”  Supporters, however, argue that over the long run, cap-and-trade will cut down energy use, thus saving consumers money in the end.


About StateImpact

StateImpact seeks to inform and engage local communities with broadcast and online news focused on how state government decisions affect your lives.
Learn More »