SAN FRANCISCO (Dow Jones)-As part of a statewide initiative to conserve energy, California regulators on Wednesday adopted new regulations requiring most televisions sold in the state to meet higher energy efficiency standards.

The new rules, the first in the U.S., will require California retailers to sell only the most efficient TVs starting in January 2011. As a result, the state is expected to save enough energy to power 864,000 single-family homes over 10 years, the California Energy Commission concluded.

The new rules will relieve strain on the state's electric grid, avoid the need for new power plants, which will cut air pollution, and lead to savings for consumers, the commission said.

CEC Commissioner Julia Levin said the new efficiency standards will save consumers statewide more than $8 billion over 10 years--money that will be "pumped back into California's economy."

"We would not move forward with this rule if we believed it was not cost effective," Levin said, before the commission approved the regulations. "It will spark new innovation, new industries and new jobs in California."

Using more efficient televisions will require lower operation of power plants, which could cut air pollution like nitrous oxides, sulfur oxides, carbon monoxide and soot by nearly 880 metric tons per year, the commission said. It could also cut greenhouse gas emissions by more than 3 million metric tons per year and reduce mercury contamination in the environment, as efficient TVs use less mercury, the CEC said. The rules will mean savings for consumers of nearly $20 a year per television, in lower electricity bills, the commission said.

Utilities including units owned by PG&E Corp. (PCG), Edison International (EIX) and Sempra Energy (SRE), supported the new rules. California utilities' profits have been disconnected, or "decoupled," from their power sales for several years as part of the state's conservation efforts.

The Consumer Electronics Association and some other consumer electronics groups opposed the tougher efficiency rules, saying they could drive up prices and put California retailers at a disadvantage to those in other states that don't have such tough regulations.

But manufacturers that already make efficient flat-panel and other TVs supported the rules, saying consumers wouldn't see prices changes, as many large-screen TVs already comply with the efficiency standards.

Regulators said the TV efficiency rules are needed to keep electricity demand growth at a moderate pace, as energy use by TVs and other consumer electronics has increased over the years, straining the grid.

TVs and other consumer electronics account for about 10% of total residential power consumption, the commission said. Commissioners noted that thousands of TVs currently on the market already meet the new standards. They also pointed out that refrigerators sold today use about a quarter of the electricity they did 30 years ago, due to appliance standards like the ones adopted Wednesday, and that consumers still have plenty of choices.

California has led the U.S. in establishing aggressive energy standards for household appliances, lighting and buildings. Those conservation efforts have helped the state keep per-capita power use flat for nearly 30 years, while power demand nationwide has grown by about 50%.

The new rules target energy-intensive smaller TVs as well as flat-screen liquid crystal display, or LCD, plasma, and other types of large television sets, which have become popular among consumers, although many of them use more electricity than conventional models.

Some plasma-screen TVs use as much as three times the electricity as older, conventional TVs with cathode-ray tubes.

California's new television efficiency rules are aimed at boosting reliability of the state's power grid and also cutting energy use as part of the state's 2006 plan to combat climate change, the commission said.

-By Cassandra Sweet, Dow Jones Newswires; 415-269-4446; cassandra.sweet@dowjones.com

 
 
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