Short Payback For Energy Efficiency

A study on patterns of energy use in two semiconductor fabrication facilities shows energy-efficiency modifications can shave energy costs without affecting production.  Surveys of two Texas facilities — an Advanced Micro Devices (AMD) plant in Austin and a National Semiconductor Corp. factory in Arlington — showed modifications to four plant systems (lighting; compressed air; tool support; and heating, ventilation, and air conditioning) could produce yearly energy savings that would quickly pay back the costs of installing them.

In the case of AMD, the modifications proposed by Planergy, an Austin-based energy services company, would cost $252,000 to implement. However, said modifications could produce an annual energy savings of approximately $580,000. Similar modifications to the National Semiconductor plant could cost $2 million to implement, but would save $700,000 a year in energy costs. Both cost projections were based on an average electricity cost of 5 cents per kilowatt hour and $3 per million cubic feet of natural gas.

Planergy says the same methodology and measurement tools could be applied in any manufacturing environment with strict humidity, temperature, and particulate requirements. Planergy conducted the study on behalf of SEMATECH, the semiconductor industry’s national research consortium.

AGA: Record Gas Demand in ’98

Natural gas consumption will hit record levels in 1998, predicts the American Gas Association (AGA). The industry trade group projected natural gas use this year will rise to 23.3 quadrillion British thermal units (Btus), or “quads.” If realized, that would eclipse the previous record of 22.8 quads set in 1972.

Over the past decade, natural gas consumption has increased by 35 percent, with the industrial sector responsible for most of that growth. Natural gas now accounts for nearly one third of all industrial energy consumption.

IOUs: Endangered Species?

Competition in the electricity industry will result in few winners and dozens of losers, but exactly how many of each is a subject of debate.

The most dire prediction comes courtesy of Richard Korpan, chief executive of Florida Progress, which owns Florida Power Corp, an investor-owned utility (IOU). On March 2, Korpan told an industry conference there would be only about a dozen large companies dominating energy production and distribution in the United States. Further, he said, only those with at least a 10 percent market share will be able to survive in the future.

There are currently about 120 million U.S. retail power users. If Korpan is correct, that means each utility must have a customer base of at least 10 million customers. For perspective, that number would be more than twice as large as the current combined customer base of the two largest utilities.

Only slightly more optimistic was Daniel Scotto, senior managing director of Bear Stearns & Co., who recently predicted the demise of 100 investor-owned utilities in the next five to 10 years. That would leave only 20 to divvy up the entire market.

Rounding out the prediction pack is Datamonitor, a New York energy consulting firm, which predicts there will be 70 investor-owned utilities left by the year 2020.

Majority Leader Plans PUHCA Vote

Senate Majority Leader Trent Lott (R-MS) continues to push for legislation that would modify or repeal a Depression-era electricity law that many say has long outlived its purpose. He
hopes to schedule a vote this month if he can stop a threatened Democratic filibuster of the measure.

Sen. Dale Bumpers, a retiring Arkansas Democrat who has championed comprehensive energy restructuring legislation, plans to filibuster against any bill altering the Public Utility Holding Company Act (PUHCA) of 1935, unless the measure is considered as part of a larger restructuring bill.