California Energy Commission should not increase price of LED bulbs, NEMA says


The National Electrical Manufacturers Association (NEMA) called on the California Energy Commission (CEC) again today to ensure that California consumers have access to the most efficient, cost-effective, and preferred LED bulbs currently on the market. A proposal under consideration at the CEC that could be voted on as early as January 27, 2016, if approved, will be the first instance in which the CEC pursues regulatory action that willreduce potential energy savings, increase the cost of energy-saving products for California consumers, and make it less likely that California consumers will want to buy these products.

“We have again asked commissioners to halt the adoption of 15-day language currently scheduled for the CEC’s January 27, 2016, business meeting,” said NEMA President and CEO Kevin J. Cosgriff. “This proposal is counter to the CEC’s mission and based on poorly analyzed data of the emerging LED lamp market.”

Numerous studies affirm that the largest impediment to adoption of LEDs has been price. In written letters to commissioners, NEMA notes that LED prices have dropped substantially since this rulemaking began, while consumer LED adoption rates have been increasing.

“Today’s market price of general service LED lamps is nearing parity with the product they are primarily intended to offset, the halogen incandescent lamp. And their price is continuing to fall,” said Cosgriff. “By contrast, CEC staff analysis acknowledges the proposal will increase the price of LED lamps and that the proposed designs are less energy-efficient than today’s more popular LED options.”

Cosgriff also reminded commissioners that 2015 LED sales grew an estimated 237 percent over 2014, which would represent approximately 188 million bulbs sold. “The adoption of LED bulbs by consumers is rapidly accelerating,” he said. “The 15-day language will negatively affect this growth, the efficiency gains that accompany them, and the prices citizens of California have to bear.”



January 29, 2016


Topic Area: Press Release


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