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Published: 1995

Total Pages: 4

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Your town can use energy efficiency as part of a program to stimulate local economic development. Energy efficiency affects economic growth because energy is used by every part of a community's economy, including producers, distributors, and marketers of goods and services. But the all-encompassing effects of energy on your local economy are not always obvious. In general, energy costs have two types of effects--direct and indirect. These are explained. The energy efficiency program in Osage, Iowa has helped meet the needs of local businesses by providing technical assistance and low-cost loans. Osage's municipally owned utility has provided an energy audit at no cost to nearly every business in town. Low-cost loans helped Osage's businesses pay for energy-efficient measures. Usually, the loans were for projects that pay back the loan principal from the energy savings within a few years. As a result of the energy efficiency program, per capita electricity consumptions in Osage is 25% less than that for the rest of Iowa. In fact, the Osage utility has been able to reduce electricity rates by 19% during the last 8 years and natural gas rates by 5% during the last 5 years. The average home owners saves almost $200 a year in energy bills, and many local businesses save much more.