Tag Archives: tax incentives

What Comes Up, Doesn’t Always Come Down

Each month, Worldwide Energy Vice President and COO Gaylen Davenport will publish his thoughts on the latest energy-efficient news, products, and trends.

This is a departure from our typical technology post, but it’s still a vital part of any energy efficient project. I’m talking about utility rates.

On average, utility rates typically rise 6-8 percent annually. At a time of record high fuel prices, historic environmental challenges, and industrial structural change, the nation’s demand for reliable electric power continues to grow, and utility companies must keep up. Without increasing rates, the energy demand could impact the quality of service, impair the ability of the utility industry to meet growing demands, and undermine the financial health of the utility industry.

In other words, utility rates will always be rising based on a variety of factors. Most utility companies in Kansas City, including Kansas City Power & Light and Amereen Missouri for example, are using the increased rates to, in part, pay for energy programs and plants.

In Janaury of this year, Missouri state regulators approved a rate increase that will affect 600,000 customers. The parent company to KCP&L was granted a $64 million increase among the utility’s three service areas.

About half of the customers in the KCP&L territory will see a 9.1 percent increase, while customers in the Great Plains territory will see a 5.2 percent increase. Businesses in the former St. Joseph Light & Power service area will see an average increase of 12.9 percent.

Since 2005, KCP&L’s prices are up about 50 percent in Missouri and Kansas. The utility was also approved for a 6.7 percent increase for customers in Kansas. And the rates will continue to climb, especially for large facilities and warehouses.

Businesses should be inclined to reduce their energy use, especially if they are looking to cut costs. On average, lighting accounts for more than 10 percent of your utility bill. Lighting retrofits and utility rebates are the best way to lower your utility costs. We also offer other energy efficient solutions that can help lower your costs including insulation, window tinting, and zoo fans.

-Gaylen

Wind Energy Tax Credit Helps Kansas

The recently extended wind energy tax credit was welcome news to much of Kansas.

Congress approved the credit of 2.2 cents a kilowatt through the end of 2013. According to the American Wind Energy Association (AWEA) the extension will also save up to 37,000 jobs in the wind energy industry.

The Kansas City Star has an in-depth editorial about the extended wind tax credit, and how it has helped Kansas.

Senate Committee Looks at Tax Incentives

The Senate Finance Subcommittee on Energy, Natural Resources, and Infrastructure has been busy.

The 13 subcommittee members are examining how incentives for energy efficiency can fit into tax reform. The current tax code already includes energy efficiency incentives, but “the hearing examined how those incentives could be adjusted to work better in a reformed tax code.”

Other bills introduced during the hearing included establishing or modifying incentives for efficiency in commercial buildings, homes, and industries.

Source: CSpan.org

Time is Running Out on Incentives

KCP&L rebates can pay for nearly half of your lighting upgrade investments.

The KCP&L rebates aren’t going to last forever. In fact, they may not be available next year. Rebates for the state of Kansas are no longer available, but the ones for Missouri customers are.

If you have considered updating your lighting system in the past, now is the time to do it. And if the rebates are not enough incentive, commonly used T12 lights have been phased out by the Department of Energy, and are no longer available for manufacture or import into the United States.

Because of this, current inventories are depleting, and prices are getting higher. Updating your system now can pay for nearly half of your investment.

Rebates Drive Lighting Retrofits

Rebates and tax incentives helped this Kansas City warehouse update their lighting to save on costs and monthly utilities.

Light emitting diodes (LEDs) are more prevalent in lighting retrofits, especially as many companies are looking to their utilities to provide rebates. The rebates offer a large energy savings that takes reduces upfront costs.

“Utilities across the country show limited prescriptive rebate support for LED lighting,” found a report by Groom Energy and GTM research. And the number keeps growing.

In fact, four years ago, there was about $3.1 billion in total U.S. rebate dollars. And the numbers are expected to more than double in coming years, from $7.4 billion to $12.4 billion available in 2020.

There’s no coincidence that the LED market is growing as well. LEDs are one of the fastest growing light replacements to traditional fluorescent lights and offer a higher energy efficiency. It’s no wonder that the increased utility funds will help push LEDs into the commercial and industrial mainstream.

Source: Green Tech Media

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