On June 2, President Obama and the EPA announced the Clean Power Plan proposal aimed at reducing carbon pollution emissions from power generators by more than 30% compared to 2005 levels.
On June 23, the US Supreme Court supported the majority of the plan, meaning the EPA can require greenhouse-gas controls on power plants and other large stationary sources of pollution. (See NYTimes.com: Justices Uphold Emission Limits on Big Industry)
Since the US gets 40% of its energy from coal generated power plants, the EPA plan and subsequent Supreme Court ruling suggests we’re all going to feel the impact – in our own pockets and on our corporate income statements.
Power providers will need to make significant capital investments to achieve these new goals. That likely means higher prices for us all. According to the US Energy Information Administration’s Electric Power Monthly report with data for April 2014, the US industrial sector consumed $171M more for nearly the same amount of electricity it used in April of the previous year. That’s a 3.4% price increase as a result of normal inflation.
It doesn’t take much analysis to estimate the added cost passed on to industrial consumers by the investments power generators will need to make to comply with the new regulations. Can your business absorb an additional 8% or more increase in your monthly electric bill?
Just what we needed to hear, right? Now what?
Paul Leavoy of LNS Research posted a blog on June 19 discussing this topic – What the New EPA Rules Mean for Your Business.
In his post, Leavoy discusses the rise, fall and rise again of the environment topic. More to the point, he presents key messages for businesses to take from this announcement. Ultimately, the main lesson, claims Leavoy, is industry needs to reduce its reliance on fossil fuels – coal in particular – with reduction ultimately helping both the corporate bottom line and overall sustainability performance.
Entegreat has been proclaiming this for years. With 30% or more of the cost of most products coming from the energy required to produce them, conservation of energy is the best way of reducing both the cost of manufacturing and your company’s environmental footprint.
Practical Sustainability. Entegreat believes you can optimize today’s production performance without sacrificing tomorrow’s resources.
This was the guiding principle when developing our newly launched product, enCONTEXTTM, which enables you to quickly begin monitoring your energy in the context of production, with no upfront investment – and then expand into the advanced capabilities of the product as you develop your corporate initiatives. When you can see what you are consuming, where you're consuming it and why, you can begin to improve; optimize consumption and reduce your carbon footprint.
Read our recent blogs for more insight on energy conservation in manufacturing, or contact us for help. You can reduce your natural resource consumption and we know how to do it.
Recent Energy Blogs:
- Energy Management in Manufacturing – Just Start
- Evaluate your Energy Management Maturity
- Energy Management – Why Now? Why Wait!
- Embark on the Energy Management Maturity Journey
- What does Energy Maturity look like? A glimpse into the world of Energy Conservation in Manufacturing