CEA report blasts proposed California TV power standard

April 17, 2009

A proposal by the California Energy Commission to impose power usage standards on televisions has drawn the attention of the Consumer Electronics Association, which contends in its own study that the move would cost the state jobs and tax revenue.

At issue is a new standard to reduce the amount of power consumed by televisions, an urgent desire for the regulators who see growing consumer adoption of HDTVs dramatically boosting electricity consumption.

The CEA fired back April 2 with a report prepared for it by Resolution Economics. The report found that the proposal would have several consequences if adopted, including:

  • $50 million in reduced sales tax receipts;
  • The elimination of 4600 retail jobs in California;
  • Forcing consumers to buy more expensive models;
  • Elimination from the California market of 83 percent of 24-34in LCD TVs that comply with ENERGY STAR specifications when the second phase of the proposed standard takes effect in 2013;
  • Limiting competition among TV makers that will result in less innovation.

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