Conserving energy is cheaper and easier than building new power plants to meet growing demand. With this in mind, a bill in the Legislature would increase funding for Efficiency Maine, the state’s energy conservation program, and encourage more efficient use of electricity through building codes, furnace and boiler standards and special training for school facility managers. The bill, LD 1931, would save electricity customers money and should be passed.

Conserving electricity would save all electricity customers money, not just those who install more efficient machinery, light bulbs and appliances. The Public Utilities Commission solicits bids from electricity generators to meet Maine’s power needs by filling the “bid stack” with the lowest-cost electricity. It adds in higher bids until Maine’s demand is met.

The wrinkle is that all bidders are paid the price of the highest bidder needed to complete the bid stack. If the highest bidders, usually those added to the stack to meet peak demand, are kept out because less electricity is needed, the overall price paid will be lower.

LD 1931 would double funding for Efficiency Maine by increasing the tiny portion of utility rates that goes toward the program. Customers currently paid 0.15 cents per kilowatt-hour to support Efficiency Maine. Under the bill this would double to 0.30 cents per kilowatt-hour over three years. This would result in an increase of about $10 a year for the average residential customer.

However, a study by Synapse Energy Economics, a Massachusetts consulting firm, found that doubling the funding for Efficiency Maine would reduce overall electricity costs by at least $45 million and as much as $180 million a year. So, electric bills could actually decrease by $20 a year.

Efficiency Maine, which is run by the PUC, offers information and cash incentives to help businesses reduce their energy usage. Hundreds of businesses have participated in the program, saving more than $2 for every $1 invested in efficiency improvements.

Jasper Wyman & Son, a Washington County wild blueberry processor, installed a more efficient air compressor in its plant. The new machine used half as much electricity and has saved the company nearly $14,000 worth of electricity since it was installed in December 2004. Katahdin Cedar Log Homes in Oakfield received a grant to install more efficient lighting in its manufacturing facility. This saved the company money on its electricity bills while improving visibility.

The program also helps residential customers through rebates for efficient light bulbs and appliance and weatherization programs for low-income households.

LD 1931, sponsored by Sen. Philip Bartlett of Gorham, would also encourage towns to adopt building codes that require energy efficiency in new structures. It would also give the PUC the authority to set efficiency standards for furnaces and boilers. The bill would also encourage schools to train their facilities managers in energy saving techniques with a goal of reducing school electricity use by 15 percent a year. Finally, the bill asks the PUC to look for a way to separate electricity deliver costs from usage.

Because transmission and distribution costs are pegged to the amount of electricity a consumer uses, there is no incentive for transmission and distribution companies, such as Bangor Hydro-Electric Co. and Central Maine Power Co., to promote energy conservation.

LD 1931 takes many small steps to promote electricity conservation in Maine. Lawmakers should support it.