Maine Energy Real Facts
Let’s get down to reality
Useful Facts for Consumers and Policy makers
September 2010
Who is MEMA?
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450 companies statewide
12,000 employees
Excellent pay and benefits
State of the art educational facility and programs
Largest purveyor of efficiency in the State
Maine’s Association for Energy Marketers
providing Advocacy, Education, Leadership and
Support for Members.
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Maine has Lowest Heating Oil Prices in
the Nation
• Average for the US: $2.79
• Maine: $2.57
Source: DOE; EIA - April 2010.
US DOE –Energy Information Administration
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Maine is 21st in Energy Consumption
per capita
• 355 million Btu per person
• New York is lowest: 204
• Wyoming is highest: 1016.
US DOE –Energy Information
Administration
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Maine has 10th highest electricity
prices in the nation
• 15.51 cents per KWH
• US average is: 11.75cents per KWH
• Almost 50% higher than average.
Recent assessments have claimed that Maine has the 6th highest,
this is from a dated EIA report
US DOE –Energy Information
Administration
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Maine has the 15th highest Natural Gas
price in the nation
Volatility in commodity prices caused by institutional investors
affects all commodities including natural gas.
3 years ago, The Maine PUC testified that our State’s extremely
high electricity prices were directly related to the then
extremely high natural gas generated electricity.
Today Natural gas prices are relatively low. We still however
have one of the highest electricity prices in the country.
US DOE –Energy Information
Administration
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Why are electricity prices high?
Not because of oil or gas!
Net Electricity Generation Maine
• Total Net Electricity Generation 1,199 thousand MWh 0.4% Apr-10
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Petroleum-Fired
Natural Gas-Fired
Coal-Fired
Nuclear
Hydroelectric
Other Renewables
9 thousand MWh
422 thousand MWh
5 thousand MWh
——
392 thousand MWh
341 thousand MWh
http://www.eia.gov/state/state_energy_profiles.cfm?sid=ME
US DOE –Energy Information
Administration
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State tax rate on Gasoline
is 11.4 cents per gallon higher than NH
• Maine excise tax is 29.5 cents per gallon
• National average: 18 cents per gallon
• Maine’s total tax rate* however is only slightly
above the national average at 49.4 cpg
• NH Excise Tax rate: 18 cents
• NH total tax rate* = 38.0 cpg
*Total tax rate includes other state taxes on motor fuel and the federal 18 cpg
excise tax
http://www.taxadmin.org/fta/rate/mf.pdf
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Maine has the 11th Highest Diesel tax
in the nation - 12.6 cpg higher than NH
• State Diesel tax: 30.7 cents per gallon
• Average national state excise diesel tax: 24
cents per gallon
• NH Diesel tax: 18 cents per gallon
Source:
http://www.taxadmin.org/fta/rate/mf.pdf
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Maine Energy Quick Facts
Source: US DOE – EIA State profiles
The Port of Portland receives crude oil shipments, which it then
sends via pipeline to refineries in Quebec and Ontario.
About three-quarters of Maine’s households – the highest share
in the Nation – use fuel oil for home heating.
Maine generates a larger share of its electricity from
nonhydroelectric renewable resources than any other State.
Maine is the only New England State in which industry is the
leading energy-consuming sector.
Maine has the highest wood and wood waste power generation
capacity in the United States
US DOE –Energy Information
Administration
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80% of Maine homes primary heat
source is Heating Oil
Home Heating (share of households) Maine, U.S. Avg.
Source: US 2000 census
Maine U.S.
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Natural Gas:
Fuel Oil:
Electricity:
Propane:
Other/None:
4%,
80%,
4%,
5%,
7%,
51.2%
9.0%
30.3%
6.5%
1.8%
DOE – Energy Information Administration
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Federal Financial Interventions and
Subsidies in Energy Markets 2007. EIA
• Energy Subsidies Not Related to Electricity
Production:
• Category
FY 2007 Subsidy Subsidy per million Btu
Million 2007 dollars
Coal
78
Nat gas and petroleum Liquids 1,921
Ethanol/biofuels
3,249
Geothermal
1
Solar
184
Other renewables
360
Hydrogen
230
US DOE –Energy Information
Administration
2007 dollars
0.04
0.03
5.72
0.02
2.82
0.14
NM
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Crude Oil Imports and Exports
• US imports 60% of its total crude used
• US produces 40% of its total crude used
• The US imports crude from over 100 countries
Source DOE –EIA
http://www.eia.gov/dnav/pet/pet_move_i
mpcus_a2_nus_ep00_im0_mbbl_a.htm
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US Crude Imports By Country of Origin
Annual Total Imports = 4,267 million barrels
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Canada = 905 Million Barrels Year
Total Persian Gulf = 616 inc: Saudi Arabia, Iraq, UAE, Qatar, Kuwait
Mexico = 441
Venezuela = 387
Saudi Arabia = 366 – Included in Total Persian Gulf above
Nigeria = 295
Russia = 205
US Virgin Islands = 101
Colombia = 100
UK = 89
Source DOE –EIA
http://www.eia.gov/dnav/pet/pet_move_i
mpcus_a2_nus_ep00_im0_mbbl_a.htm
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Subsidies and Support
to Electricity Production
Fuel/End use
FY 2007 Subsidy
Million 2007 dollars
Coal
Refined coal
Nat gas & petroleum liquids
Nuclear
Biomass
Geothermal
Hydroelectric
Solar
Wind
Landfill gas
Municipal solid waste
854
2156
227
1267
36
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174
14
724
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US DOE –Energy Information
Administration
Subsidy per unit of
Production $/MWH
0.44
29.81
0.25
1.59
0.89
0.92
0.67
24.34
23.37
1.37
0.13
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Monthly Maine heating oil prices
since 1983
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Average heating oil price?
• From 1980-2000 = $1.00 Approximately
• From 2000-2010 = $2.00 Approximately
• Average for last 30 years Approx $1.50/gal
• Electricity BTU comparison: $6.60 per Gallon.
EIA calculator
US DOE –Energy Information
Administration
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Heating Oil = 1.7% of all petroleum
used in the U.S.
• Only 1.7% of the total amount of oil used in
the US is used for heating oil.
• Maine’s share of heating oil used nationally =
6%.
• 6% of 1.7% = 0.1%
• One tenth of a percent of US oil consumption
is used as heating oil in Maine.
US DOE –Energy Information
Administration
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MEMA Education Foundation
Efficiency Study
Draft August 2010
• Preliminary data of 200 documented equipment
upgrades indicate boiler replacements range in fuel
savings from 15% to 50% with an average of 25%.
• Variations in type of replacement both unit removed
and unit installed can affect data.
• 20,000 boiler/furnace replacements occur each year
in Maine
• Weatherization coupled with replacement can
routinely achieve 50% savings. Efficiency Maine.
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Average heating oil usage in Maine
• 30 years ago – 1200 -1300 gallons per household
• Today – generally 850 gallons
• EXAMPLE:
3,000 square foot house family of 6 w/4 children ages 8-20.
heavy sports (showers).
Replaced 7 year old boiler with new boiler with indirect hot
water and purge control last August.
Used 900 gallons each previous 3 years, used 558 last year. (add
75 gallons for warm weather)
Used 30% less with only an upgrade.
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Relative Costs
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600 gallons at $3 gallon = $1,800 per year
Cell phone bill @ $130/month = $1,560
Electric - $110 per month = 1,300
Cable, internet - $100 month = $1,200
Food - $200/week = $10,400
Set of 4 tires = $800
Health Insurance $1,300/month = $15,600
Car payment -$300 month (small) = $3,600
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Why the focus on heating oil?
U.S. Primary Energy Consumption by Source and Sector, 2008
(Quadrillion Btu) Source EIA
US DOE –Energy Information
Administration
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MEMA members offer Solutions
• Upgrades to reduce usage and costs
• Many different forms of deliverable energy
including propane, oil, pellets, wood
• Provide the most solar installs in the state (hot
water)
• Will sell customer whatever they want
• Customer chooses what is right for them and
their budget
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Future of Home Heating
• Heat Pumps combined with oil and propane systems. 150160% efficiency
• Solar thermal integration with oil and gas units
• Micro CHP Combined heat and power – worldwide race to get
to mass market first. Honda
• Next generation combustion technology – modulated
• Biofuels: 14% biofuel blend reduced CO2 below nat gas.
• Liquid biofuels work with existing infrastructure
• Maine can produce cost effective biofuels today
• Ultra low sulfur heating oil – cleaner, more efficient, lower
maintenance
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