News

8/21/2009

Avoid energy efficiency scams

Don't fall for energy-efficiency scams
By Steve Oden

Today, energy efficiency is on the minds of millions of Americans. Electric bills are rising due to pressure on wholesale rates from environmental regulations, the need for additional base-load generation capacity and the rising cost of fuel. It's easy to see why marketers have targeted consumers who are searching for the proverbial silver bullet of energy savings.

This is why Missouri electric cooperative members are cautioned to look before they leap when responding to print, broadcast, or Internet ads promising electric bill savings from plug-in or wire-in power conditioning devices. When the ads also promote do-it-yourself installation involving exposure to dangerous high voltage and possible electric meter tampering, it's time to use common sense and seek advice.

Clever ad campaigns play on consumer misunderstanding of electricity and electrical devices. Sales pitches full of technical-sounding explanations and rosy testimonials overwhelm skepticism and convince buyers to sign on the bottom line. They forget to ask important questions: Have reputable, independent test labs certified the products? Why hasn't the utility industry endorsed these amazing gadgets? How can guarantees of 20- to 50-percent savings be true?

An example is the often-quoted ad claim: "Surge suppressors save electricity." Surge suppressors are protective devices only. The Federal Trade Commission (FTC) and consumer agencies have issued warnings about transient voltage surge suppressors (TVSS) hawked as energy-saving tools.

In 1993, the FTC charged a Florida company with false representation over TVSS ads claiming electric bill reductions of 20 percent and extended life for fluorescent lights. The seller agreed to settle the charges. In the consent decree, the defendants were required to possess "competent and reliable evidence to substantiate any representations" made in selling or advertising such products in the future.

This was a shot across the bow for such marketers, but it also forced creative adaptation. Today, we see a proliferation of advertising for residential power conditioning equipment based on the claim that metered electricity from a utility can be improved to help home appliances and HVAC systems operate more efficiently and cheaper.

Alternating current (AC) has three components: real power, apparent power, and reactive power. Power factor is the ratio of real power, measured in kilowatts (kW), over apparent power, measured in kilovolt amps (kVA). Reactive power, or kilovolt amps reactive (kVAR), is part of total current, but does no useful work like the kW and kVA components.

Commercial and industrial loads receiving service at higher voltages are customarily charged for reactive power. These larger loads can become more efficient in the use of electricity by installing devices called "capacitors" that remove reactive power. Whether or not capacitors are needed depends on the manufacturing process or the type, size, and number of electric motors being operated. An electrical engineer makes this determination, often after consulting with the utility from which service is received.

At the household level, power factor becomes more dubious as a means of saving energy. First, utilities already use capacitors to correct power factor on their lines. The ability to measure and control kVAR provides the host utility with a valuable management tool for improving overall system operation while reducing wholesale costs.

Second, residential consumers are not charged for reactive power, and conventional mechanical electric meters don't register kVAR. Advanced automated meters that report readings via power line carrier or radio signal can include power quality monitoring features and software, but the collected data is used for system operation and troubleshooting, not the billing of residential accounts.

Power conditioning products located on the customer's side of the meter might indeed include capacitors, but the residential consumer is not being charged for reactive power so how does savings occur? In addition, many electrical engineers and utilities are puzzled about the technologies used by device manufacturers and whether any power factor benefit can be achieved.

Impartial third-party testing results from reputable industry or academic sources are not readily available. The Electric Power Research Institute (EPRI) has launched a project to test the energy-saving claims of about 20 products, but results won't be available until 2010.

The products vary widely. Some even claim to use electromagnetic fields to reduce energy use, and others promise double-digit savings from special wrapping tape for wires and conduits in the meter box.

Many of these devices must be wired into the home's electrical system. Unfortunately, several companies are marketing their products with unsafe and potentially illegal installation advice. Do-it-yourself installers are instructed to open their meter bases and pull their own electric meters. Across the nation, electric cooperative managers and safety supervisors are aghast that consumers would be encouraged to risk electrocution.

Meters are sealed for safety and to prevent tampering. Removing a meter seal without notifying your co-op and being granted permission (usually only allowed when certified electricians will do the work) is contrary to policy, operating procedures and safety regulations. Such action could put the account holder at risk of charges for meter tampering and attempt to steal service. Electric cooperatives routinely prosecute for power theft.

One product's Web site features FAQs that include this gem:
"Will the electric company fine me for use of this product?"
Answer: "No, the only way the electric company can determine the use of this product is if you stop paying your electric bills or install it improperly damaging their equipment."

If the meter seal is broken, your electric cooperative will discover it sooner or later. The majority of Missouri electric co-ops have adopted AMR (automated meter reading) systems. Several co-ops are deploying the second generation of these "intelligent" electric meters, which include tamper alarms that will send a signal back to co-op headquarters if the meter is removed.

So, don't fall victim to claims of electric bill savings that seem too good to be true.

Contact your electric cooperative for information and advice before investing in residential power quality equipment or installing such devices.

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