The price of electricity does not reflect all the costs society pays. For example, pollution is a major hidden cost.
Uncertainty can also lead to enormous societal costs.
The Northwest Power Planning Council recognizes this inherent advantage by giving a 10 percent bonus to efficiency options over all other supply resources. The New York Public Service Commission has established the first surcharge structure in the nation to incorporate the societal costs of air pollution, water pollution, land use and other impacts. It will include a 1.4 cent per kwh surcharge in the competitive bidding programs of New York's electric utilities. Energy conservation investments could help reduce utility SO2 emissions 50 percent while lowering utility bills, according to a study by the American Council for an Energy-Efficient Economy. A frequently overlooked societal cost is the lost opportunity of generating more jobs per dollar of energy development through energy efficiency investments.