Air Conditioner Standards Need Improvements

August 31, 2001

Proposed new appliance standards for air conditioners would save consumers money, reduce the risk of brownouts and blackouts, create jobs, protect public health, and protect the environment. Environmental organizations and consumers around the country are asking why such standards have not yet been established.

The National Appliance Energy Conservation Act of 1987 (NAECA) established minimum efficiency standards for dozens of common appliances such as refrigerators, freezers, and furnaces. Under NAECA, the Department of Energy (DOE) is responsible for continually upgrading appliance standards to the "maximum level of energy efficiency that is technically feasible and economically justifiable." The DOE is currently considering upgrading the efficiency standard for central air conditioners. Such a change would have a positive impact upon the public health, the environment, and the economy.

During the summer of 1999, power outages and shortages were experienced in Pennsylvania and throughout the nation. For two days in the month of July, PJM, the power system supplying much of Pennsylvania, experienced record peak loads that resulted in steep voltage declines. Some regions served by PJM achieved peak loads that were not anticipated to be reached until 2004 or later. The result was that during the hot summer months, when people most wanted and needed their air conditioners and other appliances, there was insufficient power in Pennsylvania.

Higher energy efficiency standards for air conditioners would help solve this problem. The Appliance Standards Awareness Project (ASAP), a group formed to educate the public about the need for improved efficiency standards, recently published a report on this topic. The report documents that there are already air conditioners which are 30% more energy efficient than standard models. If this level of efficiency were achieved in all air conditioners, the results would greatly reduce the national summer peak load. By 2010, the energy savings nationwide would equal the output of 48 large power plants and in 2020 this number grows to 155 large power plants. This energy savings would greatly reduce the risk of power shortages and would be enough energy to meet the needs of an additional 257,000 households. In PA, an additional 50,000 households could be served with the energy saved.

Decreased energy demand would also result in financial savings for consumers. By 2020, customers in PA would each save about $100 a year on their utility bill. Nationally, the electricity bill savings will equal $12 billion dollars by 2020 if all air conditioning units met the proposed energy efficiency standards. This savings will make up for any increase in up front cost when investing in a new energy efficient air conditioner. The financial benefits do not end with utility bill savings. New air conditioner standards would also save businesses money by avoiding the profit loss caused by power outages. Also, new efficiency standards would require the implementation of new technologies which would result in manufacturers hiring more skilled workers.

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