DTE EE and Renewables 2013
|Company||DTE Energy Co.|
|Filer||New York State Comptroller|
|Subject(s)||Climate Change; Energy Efficiency (utilities); Greenhouse Gas Emissions; Renewables|
|Resolved Clause Summary||Report on energy efficiency and renewable energy|
|Status||Withdrawn; Company will address|
Navigant Consulting recently observed that, “changes underway in the 21st century electric power sector create a level and complexity of risks that is perhaps unprecedented in the industry’s history.”
In 2008, the Brattle Group projected that the U.S. electric utility industry would need to invest capital at historic levels between 2010 and 2030 to replace aging infrastructure, deploy new technologies, and meet future consumer needs and government policy requirements. In all, Brattle predicted that total industry-wide capital expenditures from 2010 to 2030 would amount to between $1.5 and $2.0 trillion.
In May 2011, a National Academy of Sciences report warned that the risk of dangerous climate change impacts grows with every ton of greenhouse gases emitted into the atmosphere, and reiterated the pressing need for substantial action to limit the magnitude of climate change and to prepare to adapt to its impacts. The report also emphasized that, “the sooner that serious efforts to reduce greenhouse gas emissions proceed, the lower the risks posed by climate change, and the less pressure there will be to make larger, more rapid, and potentially more expensive reductions later.”
The Tennessee Valley Authority’s (TVA) recent integrated resource plan, which employed a sophisticated approach to risk management determined that the lowest-cost, lowest-risk strategies involve diversifying TVA’s resource portfolio by increasing investments in energy efficiency and renewable energy.
There are 29 states with renewable portfolio standards or goals and over 35% of new power generation capacity in the past five years has come from renewable generating resources.
In October 2011, analysis by Bank of America stated, "Rapidly declining costs are bringing solar much closer to parity with average power prices, especially in sunny regions. By 2015, the economics of utility-scale photovoltaic energy in sunny areas and residential rooftop in high-cost regions should no longer require government subsidies.”
A 2009 study by McKinsey & Company found that investments in energy efficiency could realistically cut U.S. energy consumption by 23 percent by 2020. These efficiency gains could save consumers nearly $700 billion.
In July 2012, the Institute for Electric Efficiency indicated that total budgets for electric efficiency programs increased to $6.8 billion in 2011, up from $3.2 billion in 2008.
Many electric utilities have helped their customers achieve significant energy savings of at least 1% of the utility’s annual electricity sales including Idaho Power, Nevada Power, PG&E, MidAmerican Energy, Salt River Project, Interstate Power and Light, and Massachusetts Electric.
Shareholders request that a committee of independent directors of the Board assess actions the company is taking or could take to build shareholder value and reduce greenhouse gas and other air emissions by providing comprehensive energy efficiency and renewable energy programs to its customers; and that the Company report to shareholders by September 1, 2013 on its plans to achieve this goal. Such a report may omit proprietary information and be prepared at reasonable cost.