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Energy Efficiency and Conservation

Energy efficiency is a clearly demonstrated, cost-effective means to meet future electricity needs. States that implemented electric restructuring have set up policies to finance energy-efficiency improvements for residents and businesses. Regulated states have been moving toward policies that use to require a certain amount of expenditures on efficiency by utilities toward policies that require a certain amount of energy savings.

Initially many of the financing mechanisms - usually additional charges on utility bills - for efficiency programs were to be discontinued after five years or so. And funding levels for the efficiency programs have typically been set at low levels compared to the peak years of spending on efficiency.

With the electric power crisis of 2001, many states are re-thinking this strategy and have begun to take a second look at the enormous benefits that energy efficient technologies can have on the economy and the environment. In early 2001, New York's Public Service Commission voted unanimously this morning to extend energy efficiency and energy assistance programs (commonly referred to as public benefit programs) for 5 more years at an annual level of funding of $150 million which is approximately twice the level for the past three years but still below peak spending of 1994. New Jersey has also comitted to increased spending of 70 percent over current levels and California also has aggressive efficiency goals.

More Information:

Rules

Decoupling Energy Profits from Sales

  • Local
  • State
    • Electric utilities are in the business of selling electricity. And even though most utility sponsored energy conservation programs reward the utility handsomely for saving electricity, the lure of selling more and more is overpowering. A performance-based ratemaking (PBR) tariff or decoupling policy can help eliminate this problem by rewarding utilities for saving energy and providing good service rather than selling more kWhs. More

    Building Energy Code - Minnesota

  • State
    • Minnesota once had a model of energy efficient code when compared to other states. Minnesota Statute required that the Minnesota Energy Code "be designed to equal or exceed the most energy-conserving codes adopted by any other state." More

    Appliance and Equipment Efficiency Standards

  • State
  • Federal
    • When the federal government or states establish appliance and equipment standards, they are setting the bar for minimum energy efficiency of products. Standards save money for energy users, protect the environment, and boost the economy. They hasten adoption of energy-saving technology in products, often with improved performance. More

    Efficiency Vermont

  • State
    • The Vermont Public Service Board (Board) ordered the creation of the energy efficiency utility in response to a request from the Department of Public Service, all of the state's 22 electric utilities, and a dozen consumer and environmental groups. Through Efficiency Vermont, consumers, businesses, manufacturers, and farmers across the state can participate in the same seven energy and money-saving programs. More

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