Missouri could save $7 million by cutting energy bills

JEFFERSON CITY, Mo. -- Missouri could save more than $7 million a year if it reduced its energy bills by 10 percent, according to a state report released Tuesday.

The Governor's Energy Policy Council said that the savings could be used for other state programs in desperate need of money because of recent budget troubles.

Missouri agencies and higher education institutions spend about $78 million for energy use in their facilities.

"This report shows that not only can energy efficiency be practical, but it can be cost effective as well," said Steve Mahfood, director of the Department of Natural Resources. "Money saved by the state government in energy costs is money that can be spent on public service."

For example, the report said the Office of Administration has saved about $100,000 in energy costs by making energy efficiency improvements in 26 state buildings.

Nationally, Missouri ranked 17th in transportation energy use in 2000, 15th in residential energy use, 13th in commercial use and 31st in industrial energy use.

The report also said that in 2000, Missouri imported more than 95 percent of its energy sources in the form of coal, petroleum and natural gas, and spent $13.2 billion on its energy needs. That was up from $11.3 billion in 1999.

The council found that energy efficiency and the development of Missouri's renewable energy resources offer economic benefits to Missouri and should be included in any plan to meet the state's energy needs.

Depending on fossil fuels

About 93 percent of all the energy used in Missouri was fossil fuels including coal, petroleum and natural gas. The bulk of Missouri's electricity -- 82 percent -- is produced by coal while nuclear energy produces 13 percent of the state's electrical needs. Meanwhile, Missouri consumed more than 8.5 million gallons of gasoline a day, the report said.

The report said Missouri's greatest success in the renewable energy area was with ethanol plants operating in Macon and Craig in the northern part of the state. The plants are estimated to add about $173 million annually to the farm economy and create more than 1,800 jobs.

The energy council includes representatives from several state agencies, the legislature, the general public, utilities, other businesses, labor, environmental groups, energy efficiency organizations and renewable energy organizations.

The council also has raised concerns about low inventory levels of natural gas that may result in higher heating prices next winter.

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On the Net

Energy Report: www.dnr.mo.gov/oac/EnergyPolicyCouncilreport.pdf.