Is Conservation Enough to Resolve Energy Crisis?

Coalition Urges New England Officials to Support the

Locational Installed Capacity (LICAP) Proposal

BOSTON, Jan. 10 /PRNewswire/ -- Today the New England Coalition for
Reliable Electricity (http://www.NECORE.org) called for local
politicians and government officials to support the Locational
Installed Capacity (LICAP) proposal as a solution to the state's
energy crisis. Recently, local politicians have called for increased
conservation to stave of the region's energy and electricity crisis:

* Vermont's Governor -- Jim Douglas -- recently kicked off a public

awareness campaign aimed at helping "Vermonters control their energy

costs and encouraging effective conservation measures." Douglas also

warned last month that the state might experience "blackouts" due to

energy shortages, particularly if Vermont experiences an extended cold

snap.

* In Maine, state Senator Phil Bartlett, D-Cumberland County, recently

unveiled new legislation (An Act to Encourage Energy Independence for

Maine) that focuses on improving energy conservation and energy

efficiency. Senator Bartlett also pointed out that Maine lags behind

the rest of New England in its investment in energy efficiency.

But is conservation enough? Are there other methods and policies New
England should focus on to increase its electricity supply?

"However many conservation measures we adopt, it won't be enough to
satisfy our growing demand for electricity, which will increase at an
annual rate of 1.5% for as long as industry experts can forecast.
That's because we need a larger and more reliable energy supply than
the one we have now," said Cindy Eid, executive director of the New
England Coalition for Reliable Electricity (NECORE). "I applaud
Governor Douglas and Senator Bartlett for shining more light on such
an important issue but focusing on conservation is not enough. New
England needs the LICAP proposal to curb electric bills from
skyrocketing and increase the electricity supply -- both of which are
greatly needed."

Proposed by the ISO- New England, a nonprofit corporation that
coordinates the region's power supply and keeps electricity flowing,
the Locational Installed Capacity (LICAP) proposal would prevent
future electric bills from skyrocketing, provide cleaner and more
affordable electricity, create additional good-paying jobs and lead to
cleaner air and water.

LICAP is currently under the Federal Energy Regulatory Committee's
(FERC) review. Once in place, LICAP would increase the region's power
supply by compensating electricity producers for expanding their
generating capacity where that additional capacity is most needed and
before growing demand for electricity overwhelms supply.

A report prepared by CRA International and released by NECORE found
that implementing LICAP would give New England's energy consumers a
more affordable and more reliable electricity system compared to
maintaining the regulatory structure currently governing New England's
electricity market. Furthermore, the report found that over a period
of 20 years the improved electricity network made possible in large
part by LICAP could provide the region with an annual economic benefit
of $161 per household and could lead to the creation of 15,522 new
jobs.

The New England Coalition for Reliable Electricity (NECORE) is
dedicated to promoting economic growth and ensuring a cleaner,
reliable and more affordable supply of electricity in New England
communities. http://www.NECORE.org.

To view CRA International study (including state by state analysis),
please visit: http://www.necore.org/cgi-bin/press/display.cgi?doc=8.
SOURCE New England Coalition for Reliable Electricity