By Paul Gagnon – Director, North American TV Research and Paul Semenza – Senior Vice President, Analyst Services
After many months of debate and discussion, the California Energy Commission (CEC) issued a final decision to implement rules limiting power consumption for TV sets sold in California, starting in 2011.
The opponents of the rules, led by the Consumer Electronics Association (CEA), made a host of arguments, both at a boisterous hearing in October, and in a 91-page submission made to the CEC on November 2. The CEA spent a considerable amount of resources fighting the regulations, including commissioning two different studies critiquing the CEC’s methodology. The critiques mainly focused on disputing the magnitude of energy consumption and cost savings that the CEC claimed would result from their regulations.
But the opponents also made contradictory arguments. On the one hand, complying with the regulations would increase costs and stifle innovation in TV design, and on the other hand, that the industry was already improving energy efficiency, and that voluntary regulations like Energy Star were sufficient. As the chart below shows, for the most part, the “other hand” was right. There are numerous sets already available on the market that comply with the Tier 1 regulations that will not go into effect for over a year.
Figure 1: California Energy Commission Proposed Maximum Energy Usage for TVs

The data also show that the argument about stifling innovation does not hold up. One of the biggest innovations in TVs this year has been the introduction of LED backlit LCD TVs. As the chart indicates, these are the sets that are most energy-efficient at this time. And over the next few years, energy efficiency will improve and costs will fall, due to improvements in LED performance, backlight unit design, and LCD design. So there should be plenty of room in the power budget for connectivity and other new innovations.
Plasma, it should be noted, is at a significant disadvantage in meeting these requirements, but that is precisely where innovation can play a role. Just like the claims of regulations banning plasma in Europe earlier this year, some have alleged that these regulations do the same. But, despite the CEA’s claim that the energy regulations constituted a “ban on new and evolving TV technologies,” the regulations are completely technology-agnostic. Set makers can use whatever technologies and features they want, as long as they come in under the curve.




