State and Local Policy Database

Customer Energy Efficiency Programs

: A wide range of state energy efficiency policies and program efforts are implemented through the utility sector and/or “public benefits” energy programs, which have the responsibility of administering and delivering electric and natural gas efficiency programs. These programs target numerous customer segments including residential and commercial buildings, industry, and agriculture.

A handful of utilities offer some small energy efficiency program offerings in Alabama, however the level of investments and savings from efficiency are far lower than the national average.  The Tennessee Valley Authority (TVA), a federally-regulated utility which provides electricity to 17 municipal and cooperative utilities in Alabama, offers the largest energy efficiency program offerings through participating partner utilities. The state's only regulated investor-owned utility, Alabama Power, and a few other cooperative utilities offer energy efficiency programs, however their demand-side investments focus mainly on load management rather than energy efficiency. Alabama Public Service Commission (APSC) encourages Alabama Power to pursue energy efficiency programs, but a cost-effectiveness requirement  results in Alabama Power having fewer offerings than are seen in many other states. 

There are currently no natural gas efficiency programs in Alabama.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: September 2016

Much of the existing program activity is through the state government, not the utilities. The major state government program, the Home Energy Rebate Program, has saved about 1.7 trillion Btus since 2008 (savings are mostly in heating fuel rather than electricity). This and other state programs are covered on Alaska’s State Government tab.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: June 2016

Under the Arizona Administrative Code, electric and gas utilities must administer efficiency programs to meet targets set by the state’s energy efficiency resource standard (EERS). The Arizona Corporation Commission (ACC) approves program funding and spending for regulated utilities. Energy efficiency programs in Arizona are funded through an adjustor mechanism, collected through a non-bypassable surcharge on electricity bills, or through an adjustor mechanism, depending on the utility.

Arizona Public Service Company (APS), a major investor-owned utility and Arizona’s largest electric utility, operates a number of successful DSM programs for residential and non-residential customers. The utility operates a variety of residential and non-residential programs. Tucson Electric Power Company (TEP) recently received approval for updates to its DSM Program Portfolio, which includes programs for both residential and non-residential customers.

UniSource Gas and Southwest Gas also operate some energy efficiency programs..

Salt River Project, a public utility, has recently ramped up its energy efficiency programs. It seeks to achieve 20% of its expected retail sales through the implementation of energy efficiency and renewable resources by FY 2020. The utility has also set energy efficiency targets of 1.5% annual savings between FY 2012-2014, 1.75% between FY 2015-2017, and 2% between FY 2018-2020.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: September 2016

In May 2007, the Public Service Commission approved Rules for Conservation and Energy Efficiency Programs requiring electric and gas utilities to propose and administer energy efficiency programs (Docket No. 06-004-R, Orders No. 1, 12, 18). The state’s jurisdictional utilities filed Energy Efficiency Plans in July 2007 containing proposed Quick Start efficiency programs. All seven gas and electric utilities elected to sponsor and fund statewide programs supporting weatherization and energy efficiency education. The three gas companies jointly sponsored a statewide energy audit program for commercial and industrial customers.  Each of the seven utilities individually proposed EE programs. There are 22 electric utilities regulated by the AR PSC, including cooperatives and investor-owned, but not municipal or independent power producers.

In 2010, the APSC further established the importance of energy efficiency as a resource by adopting an energy efficiency resource standard (EERS), guidelines for efficiency program cost recovery and a shareholder performance incentive, and new guidelines for utility resource planning, which include provisions for demand-side resources. Since then, electric and gas utilities have significantly expanded their energy efficiency program portfolios in order to meet the annual energy efficiency targets. Recovery of direct program costs associated with commission-approved energy efficiency programs is accomplished through an energy efficiency cost recovery rider on customer bills.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: June 2016

Investor-owned utilities administer energy efficiency programs with oversight by the California Public Utilities Commission (CPUC), which establishes key policies and guidelines, sets program goals, and approves spending levels. Investor-owned utilities and third-party contractors implement the programs. A share of public benefits funding is designated to go to non-utility organizations to offer programs that supplement and complement those of the IOUs and POUs. California's publicly-owned utilities (POUs), such as large municipal utilities serving Los Angeles and Sacramento, also administer and provide programs to their customers.

Several utilities provide on-bill financing.  More information may be found in the ACEEE report, Energy Efficiency Financing Programs.

California's utilities fund some of their programs and initiatives through resource procurement budgets and recover their costs through rate cases brought before the CPUC. California's utilities also used to collect a Public Goods Charge (PGC) on customer utility bills to fund utility energy efficiency programs. Public Goods Charge is California’s name for a public benefits fund established in Assembly Bill 1890 in 1996. The PGC (see R.09-09-047, section 11) was not reauthorized by the California Legislature in 2011, and Governor Brown directed the CPUC to pursue continuation of funding for these programs before the PGC expires.  About one-quarter of the utility energy efficiency portfolio budgets came through the PGC; the remaining majority of the energy efficiency portfolios is funded through utility procurement funds and is unaffected by the expiration of the PGC.

California also funds energy efficiency programs through funds collected as part of its AB 32 cap and trade program. AB 32 requires California to reduce its GHG emissions to 1990 levels by 2020 — a reduction of approximately 15 percent below emissions expected under a “business as usual” scenario. AB 32 authorizes the collection of a fee from sources of GHGs, including  oil refineries, electricity power plants (including imported electricity), cement plants and food processors.  Funds collected are used to provide staffing, contracts and equipment to ARB and other state agencies to implement AB 32. 

Beginning in fiscal year 2013-2014, California has particularly targeted energy efficiency improvements in schools. The California Clean Energy Jobs Act (Prop. 39) changed the corporate income tax code and allocates projected revenue to California's General Fund and the Clean Energy Job Creation Fund for five fiscal years. Under the initiative, roughly $550 million annually is available for appropriation by the Legislature for eligible projects to improve energy efficiency and expand clean energy generation in schools.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: June 2016

Funding for energy efficiency has increased substantially in Colorado in recent years since the state adopted an EERS in 2007. Xcel Energy (operating as Public Service of Colorado (PSCo)) is the major investor-owned utility (IOU) in Colorado and administers its programs after they have been approved by the Colorado Public Utilities Commission. Xcel Energy’s programs are funded by a demand-side management Cost Adjustment Mechanism rate rider. Black Hills Energy is the other IOU that serves electricity to customers in the state and generally follows Xcel Energy’s energy efficiency savings targets. Holy Cross Energy, a rural electric cooperative utility, approved a portfolio of energy efficiency programs for 2012-2016 that will achieve savings equal about 0.5% of retail sales per year. 

Natural gas programs are also available in Colorado. The 2007 state legislation required that the Colorado Public Utilities Commission set energy savings goals for natural gas, which are commensurate with spending targets of at least 0.5% of prior year’s revenues.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: September 2016

Electric distribution utilities, natural gas companies, and municipal electric utilities are required by Connecticut statute to provide "conservation and load management" (C&LM) programs for their customers. The Energy Efficiency Board (EEB) advises and assists the electric and natural gas utilities in the development of energy efficiency programs included in their Conservation and Load Management Plan (“Plan”). The integrated Plan is subject to review and approval by the Public Utilities Regulatory Authority (PURA) and the Department of Energy and Environmental Protection (“DEEP”). All programs included in the plans are required to pass a benefit-cost test. The DEEP and PURA oversee the fully integrated electric distribution utility and natural gas utility programs. The EEB, appointed by the Commissioner of DEEP, administers the Connecticut Energy Efficiency Fund (CEEF).  The utilities administer the energy efficiency programs. The utilities and contractors hired by the utilities implement the programs. 

The EEB and the CEEF were established in 1998 through the state’s electric utility restructuring legislation, Public Act 98–28, An Act Concerning Energy Independence, Connecticut General Statute §16-245m. The 1998 Act required electric companies to offer efficiency programs. In 2005, Public Act 05-1, An Act Concerning Energy Independence (Connecticut General Statute §16-32f  and Connecticut General Statute §7-233y) required the investor-owned natural gas companies to submit energy efficiency program plans to the DPUC and required the municipal electric companies and the Connecticut Fuel Oil Conservation Board to work with the EEB to develop energy efficiency programs for their customers.

Investment and savings information is summarized at www.ctenergydashboard.com .There are low-interest loans available for commercial and industrial customers as well as 0% on-bill financing for small businesses who implement eligible energy-savings measures. More information can be found in the ACEEE report, Energy Efficiency Financing Programs.

Connecticut’s electric energy efficiency programs are funded by a monthly system benefits charge on customers' electric bills.  Connecticut Energy Efficiency Fund (“CEEF”) electric programs are also funded through the revenues the electric utilities receive from the ISO-New England Forward Capacity Market (“FCM”).  CEEF will also be supplemented with funds the electric utilities receive from the Regional Greenhouse Gas Initiative (RGGI”).  Natural gas energy efficiency programs are funded by a monthly charge established in the companies’ Plan plus funding based on the difference between the imposed tax and the approved tax (described in PA 07-242, section 115b). Municipal electric utilities are required to create a fund to support energy efficiency and renewable energy programs. This fund is supported by a surcharge of 0.22 cents/kWh.

Additionally, Conn. Gen. Stat. § 16-245m(d), as amended by Connecticut Public Act 13-298, provides for PURA to ensure that additional revenues required to fund the approved C&LM budget are “provided through a fully reconciling conservation adjustment mechanism for each electric company of not more than three mills per kilowatt-hour of electricity sold to each end use customer of an electric distribution company during the three years of any Conservation and Load Management Plan [and] a fully reconciling conservation adjustment mechanism for each gas company of not more than the equivalent of four and six-tenth cents per hundred cubic feet during the three years of any Conservation and Load Management Plan.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: June 2016

In 2007, Senate Bill 18, Substitute Number 1 was passed, creating the nonprofit corporation Sustainable Energy Utility under the direction of an Oversight Board and the State Energy Coordinator within the Department of Natural Resources and Environmental Control. The SEU was designed to operate programs to deliver comprehensive end-user energy efficiency and customer sited renewable energy services.  In January 2013, the SEU re-launched a residential new construction program and has additional programs under development.

Parallel with the development of the sustainable energy utility, electric utilities are required to prepare integrated resource planning demand-side management plans. Delmarva Power & Light filed its second Integrated Resource Plan (“IRP”) on December 7, 2012 opened under Order No. 8259. On July 29, 2011 Delmarva Power & Light filed an application with the Commission seeking approval of the Company's proposed Residential Direct Load Control Program (PSC Docket No. 11-330). Delmarva Power & Light's New Residential Air Conditioning Cycling Program was approved on October 17, 2012.

The Sustainable Energy Utility (SEU) programs are funded by Regional Greenhouse Gas Initiative proceeds and via "special purpose" bonding by the State of Delaware. Revenue sources to pay off the bond debt and help the SEU to grow will include:

  1. Shared savings agreements with program participants,
  2. Partial proceeds from the sale of renewable energy credits in local and regional markets, and
  3. Green energy fund monies (from a fund, established by an earlier statute that collects revenue from electricity sales).

 

In 2014, the state legislature passed SB 150 with an amendment calling for expansion of cost-effective electric and natural gas utility programs, and allowing utilities to deliver these programs and recover costs through rates. The Energy Efficiency Advisory Council (EEAC) was created through SB 150. The Council began meeting in December 2014 to develop a suite of cost-effective energy efficiency programs and have since approved energy savings targets. Program implementation plans are also being developed through the Council and evaluation, measurement, and verification regulations to govern the programs are being drafted by DNREC.

Additionally, the EEAC has begun reviewing the energy efficiency program portfolios developed by Delaware's energy providers and the Sustainable Energy Utility.  In order to support a robust and comprehensive portfolio of programs, the EEAC worked to create a common template for all Program Administrator's to use when developing their program plans, budgets, and timelines to submit to the EEAC. This enables interested parties to better understand individual's plans and affords the opportunity to identify gaps that could be filled in either target markets and/or geographic coverage, while making it easier to identify where PA’s could leverage and coordinate efforts to maximize cost-efficiencies and depth of services.  EM&V regulations have been drafted by DNREC in consultation with the EEAC.  Public workshops are scheduled for May 2016 to continue the regulatory process. The regulations are expected to be finalized this year.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: June 2016

The District of Columbia has had customer energy efficiency programs funded by a systems benefits charge since a 2005 decision by the Public Service Commission of the District of Columbia. The Reliable Energy Trust Fund was created as a result of authorization included in the District's 1999 "Retail Electric Competition and Consumer Protection Act." The fund had supported a variety of programs and services since 2005. Program services included energy awareness programs, rebates for efficient appliances, and low-income energy assistance.

In December 2008, the DC Public Service Commission approved five demand-side management programs. These programs were initially implemented by Potomac Electric Power Company (PEPCO), the local investor-owned utility.

In 2008, the District of Columbia enacted the Clean and Affordable Energy Act, which effectively eliminated the Reliable Energy Trust Fund and replaced it with a new fund, the Sustainable Energy Trust Fund. This fund is administered by the District Department of the Environment, and it funds DC's third-party "Sustainable Energy Utility" (DCSEU). Responsibility for the implementation of energy efficiency programs was transferred from PEPCO to DCSEU in 2011.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: September 2016

The 1980 Florida Energy Efficiency and Conservation Act (FEECA) requires utilities to implement cost-effective energy efficiency programs. Florida utilities establish demand-side management (DSM) conservation goals for summer and winter demand (MW) and annual energy sales (GWh). The Florida Public Service Commission reviews DSM goals for each utility at least once every five years and sets demand and energy sales goals that extend 10 years into the future. Within 90 days after the Commission issues its order approving a utility’s DSM goals, that utility must file a plan with the commission for approval. The utilities are also required to file annual reports on their DSM programs.

Most of these DSM plans include residential, commercial, and industrial sectors. The utilities provide conservation education programs to their customers. They also typically offer incentives to encourage customers to install more efficient equipment. The utilities distribute the costs of the programs by adding a surcharge for all customers. The surcharge varies by utility.

Natural gas programs are available for residential and commercial customers in Florida and are required by both legislation and orders. Natural gas energy efficiency is required by the Florida Statutes (Section 366.81-82). It is also required by FPSC Rule 25-17.009.

Investor-owned electric utilities may recover reasonable expenses, including customer incentive costs, forDSM programs approved by the Florida Public Service Commission. The utilities recover these costs by adding surcharges to customer bills. Also, the FPSC conducts Energy Conservation Cost Recovery (ECCR) proceedings each November and determines an energy conservation cost recovery factor to be applied to bills during the next year. This factor is based on each utility’s estimated conservation costs for the next year.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: June 2016

Since the early 1990s, Georgia statute O.C.G.A. § 46-3A-2 has required the regulated electric utilities to file integrated resource plans with the Georgia Public Service Commission every three years.  The IRPs must consider the impact of energy efficiency improvements on projected energy demand.  The companies must file the IRPs in accordance with GPSC Rule 515-3-4, the commission’s IRP rule.  Natural gas companies are not required to file IRPs or offer energy efficiency programs.

Regulated utility energy efficiency and demand-side management programs are funded through a demand-side management rider that is applied to residential and commercial customers. Georgia Power is the only regulated electric utility in the state. Georgia Power filed its 2013 IRP in Docket Nos. 36498 and 36499. The utility has eight certified energy energy efficiency programs - five residential and three commercial programs. Each customer class is responsible for the program and incentive costs of their respective program. 

Tennessee Valley Authority (TVA) also works with partner utilities to offer audits and incentives for residential and business customers. Additionally, many of the Georgia Electric Membership Corporation’s cooperatives offer rebates for installation of certain energy-efficient appliances such as water heaters, heat pumps, programmable thermostats, and compact fluorescent light bulbs.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: June 2016

Hawaii signed a Memorandum of Understanding (MOU) with the federal Department of Energy in 2008. This MOU established the Hawaii Clean Energy Initiative, a long-term partnership between Hawaii and the DOE. This partnership will advance energy efficiency and renewable energy in Hawaii with the goal of supplying 70% of the state’s energy needs by 2030.

In 2009, the Hawaii Public Utilities Commission (HPUC) contracted with a third party, Leidos, to administer Hawaiian Electric Company (HECO)’s programs. The program is now called Hawaii Energy. Kauai Island Utility Cooperative (KIUC) operates its programs independently. Hawaii does not provide natural gas energy efficiency programs.

Ratepayers who are customers of HECO support Hawaii’s consolidated energy efficiency programs by paying a public benefits fee. Hawaii Public Utilities Commission Docket No. 2007-0323 outlines the structure of the public benefits fund. KIUC operates its programs independently. Costs are recovered by utility rates set by the Cooperative’s directors.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2015

Idaho's investor-owned utilities administer and implement energy efficiency programs and are regulated by the Idaho Public Utilities Commission (PUC). Utilities recover the costs of offering programs via adding a tariff rider surcharge to customer bills. Idaho’s electric efficiency utility programs are not required by legislation.

In 1989, Regulatory Order 22299 required utilities to consider cost-effective energy efficiency measures for natural gas. 

The PUC requires utilities to file and implement demand-side management (DSM) plans. In 2001, the PUC ordered Idaho Power to file a comprehensive DSM plan and implement programs. In 2006, the PUC required Pacificorp (Utah Power and Light and Rocky Mountain Power) to file and implement a comprehensive DSM plan; the utility filed a new plan in 2009. Low-income programs are administered by the Idaho Department of Health and Welfare.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: September 2016

Illinois passed legislation (SB1592) in July 2007 that created a requirement for large-scale utility energy efficiency programs in Illinois. SB1592 authorizes utilities to recover the costs for providing energy efficiency programs and directs utilities to design and implement cost-recovery tariffs. Funds from the tariffs cover both utility- and state-administered programs. There is a cost cap in place that limits program costs to a maximum of 2% of customer rates. This cap has been ramped up from an initial cap of 0.5%. Illinois established a natural gas EERS in 2009 with a goal of providing 8.6% cumulative savings by 2020.

Under both electric and natural gas EERS policies, individual utilities are required to administer 75% of the total funds raised by tariffs in place. The Illinois Department of Commerce and Economic Opportunity (DCEO) administers 25% of the funds, which are used to target government facilities, low-income households, and market transformation-oriented information and training programs. 

The utilities also offer on bill financing opportunities to their customers for energy efficiency measures.

Section 16-111.5B of the Illinois Public Utilities Act provides for additional procurement on an annual basis of cost-effective electric energy efficiency programs (beyond those included in Section 8-103 programs and without the spending limitation included in Section 8-103) through Illinois energy and power procurements. Each large electric utility conducts an annual solicitation process for purposes of requesting proposals from third-party vendors. The statute provides that "the Commission shall also approve the energy efficiency programs and measures included in the procurement plan, including the annual energy savings goal, if the Commission determines they fully capture the potential for all achievable cost-effective savings, to the extent practicable, and otherwise satisfy the requirements of Section 8-103 of this Act." There has been a significant increase in utility expenditures on energy efficiency due to this statutory provision.

Section 8-408 of the Illinois Public Utilities Act provides for voluntary energy efficiency programs to be offered by a medium-sized utility that is not subject to the mandatory energy efficiency standards. After a review of the initial pilot plan, the Commission determined that the cost-effective programs should continue into the future. The Commission approved a new 5-year gas and electric energy efficiency plan in ICC Docket No. 13-0423.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: June 2016

Both natural gas and electric utilities in Indiana operate energy efficiency programs. These utilities include Duke Energy, Vectren, Indiana Michigan Power Company, Northern Indiana Public Service Company, Indianapolis Power and Light, and NIPSCO, the latter a merger of Northern Indiana Fuel and Light and Kokomo Gas and Fuel. While some of these programs have existed for over a decade, they have been relatively small.

In 2007, the state’s regulators, utilities and stakeholders began efforts to expand customer energy efficiency programs and to establish targets for energy savings through such programs. This has led to a series of dockets at the Indiana Utility Regulatory Commission (IURC). A Commission order (in Case 42693) called on all electric utilities to provide a core set of statewide programs. It was implemented starting January 2, 2012. Phase II of the order requires regulated utilities to achieve energy savings targets. Utilities contracted with a single independent third party administrator for the purpose of jointly administering and implementing the “Core Programs,” called “Energizing Indiana.” Non-jurisdictional utilities, such as cooperatives and municipal utilities, were invited to participate in the statewide Core program. However, most of these non-jurisdictional utilities chose not to participate.

The portfolio of core programs, Energizing Indiana, which was created as the result of IURC orders on customer energy efficiency programs, provided a statewide approach offered by all regulated electric utilities. Utilities are able to oversee additional programs, called Core Plus programs. 

SB 340 eliminated the Core programs as delivered by GoodCents as well as the specific targets set in the Phase II order. IOUs were required to file new plans. The bill includes an opt-out provision that allows customers that operate a single site with at least one meter constituting more than 1 MW demand for any one billing period within the previous 12 months to opt out of programs. Over 125 companies have provided notice to opt out. The 2015 energy efficiency plans approved for Duke, Vectren, IPL, I&M and NIPSCO continue many of their previous programs. 

Natural gas programs are not subject to Case 42693, although combination electric-gas utilities do offer joint programs for administrative efficiency purposes. Additionally, energy efficiency programs for natural gas utility customers have been growing steadily in recent years. The IURC requires utilities to complete market potential studies, annual operating plans, annual reports and EM&V reports for their customer programs. NIPSCO, Vectren North, Vectren South, Citizens Gas, and Citizens Gas of Westfield currently offer natural gas energy efficiency programs. However, Citizens Gas filed their intention to s uspend energy efficiency programs as of the end of June 2016.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables on the left.

Last Updated: June 2016

Iowa's energy utilities administer energy efficiency programs for their customers. State law requires regulated utilities to provide such programs. Most publicly owned utilities in Iowa (municipal utilities), as well as rural electric cooperatives, provide energy efficiency programs, ensuring nearly statewide coverage.

Regulated investor-owned utilities recover costs of programs approved by the Iowa Utilities Board via adding tariff riders to customer bills. This is an automatic rate pass-through, reconciled annually to prevent over-recovery or under-recovery. Recently-filed utility plans indicate an increasing level of funding for, and commitment to, energy efficiency. The IUB is authorized to conduct prudence reviews of IOU energy efficiency and may disallow imprudent costs. 

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2015

Kansas does not have any laws or regulatory rules that require energy efficiency programs.  In its November 2008 order in Docket No. 08-GIMX-441-GIV, the commission chose not to require energy efficiency programs from the state’s electric and natural gas utilities but determined that it would collaborate with utilities as they pursue energy efficiency as a resource (see also Docket No. 07-GIMX-247-GIV and Docket No. 08-GIMX-442-GIV). 

The majority of programs currently provided by the Kansas utilities offer rebates or financing for energy-efficient appliances and equipment for water heating, space heating, air conditioning, and lighting. There also are new homes programs and custom programs.  Generally the scale and scope of programs and services available to customers is smaller than in leading states with large program portfolios and more comprehensive sets of customer options.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2015

Kentucky's regulated utilities administer and implement DSM programs with oversight from the Kentucky Public Service Commission. Several utilities administer some programs, although overall funding for and activity in energy efficiency programs have been relatively modest. Program costs are recovered through tariff riders on utility customer bills.

For years, these programs were optional, but a new interest in efficiency began in 2007 with Kentucky's 2007 Energy Act, which recommended that utilities examine specific issues regarding energy efficiency and related programs. The state has since established new rules to allow the Commission to require utilities to implement specific DSM programs. State legislation HB 240 was reenacted in 2010 (after first passing in 1994 and amended in 2008) to allow the KPSC to create requirements for demand-side management programs. The Commission's authority is only to review and approve or deny DSM programs and associated cost recovery through surcharges on customer bills. Kentucky requires that utility programs allocate their costs and resources according to the sectors that the programs will benefit (residential, industrial, etc.). The legislation also requires that the KPSC consider equity between different classes of customers. Utilities are not required to report annually on energy efficiency programs to the Commission.

Natural gas programs are not required by legislation, but are available for all sectors other than industrial customers. These programs are administered by utilities and implemented by third-party contractors.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: June 2016

Entergy New Orleans offers a portfolio of energy efficiency programs including residential, small commercial, and industrial offerings through its Energy Smart program. Entergy Louisiana/Gulf States, Cleco Power, and Southwestern Electric Power Company (SWEPCO) all began offering quick-start energy efficiency programs for residential and business customers in November 2014. In 2016 the three Louisiana utilities that opted in filed their first round of annual reports demonstrating that they had met or exceeded savings levels laid out in their plans.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables at the bottom of the page.

Last Updated: September 2016

All electric utility customers—both of consumer-owned and publicly-owned utilities —are eligible to receive services through the statewide programs administered by Efficiency Maine. The purposes of Efficiency Maine include consolidating the funds for Maine's consumer efficiency programs for all fuel types; integrating delivery of electric and thermal efficiency measures to consumers; acquiring customer-sited energy resources (efficiency and alternative energy) at lower cost than traditional energy supply; and helping to transform the energy market in Maine by providing consumers with more efficient, affordable products and energy services. All utilities contribute funding to the programs.

Natural gas programs are also administered by Efficiency Maine, and serve commercial, industrial, and residential customers, including low-income residential customers. State statute was recently amended, as part of the Omnibus Energy Act passed in 2013, to extend these programs to each natural gas utility in the state, improving on an old law that had limited the program only to the state’s largest gas utility.

By rule, at least 10% of funds must support energy programs for low-income residents, and at least 20% of funds must support energy programs for small business customers. Historically, the PUC has assessed utilities to collect funds for energy programs and administrative costs. In addition, Efficiency Maine manages money from the Regional Greenhouse Gas Initiative (RGGI) and grants, such as those received from the Federal government's American Recovery Reinvestment Act (ARRA) in 2010. The funds for natural gas conservation programs are collected through a rate surcharge.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: June 2016

The EmPower Maryland Energy Efficiency Act of 2008 directs the Maryland Public Service Commission (PSC) to require electric utilities in the state to provide energy efficiency services to its customers to achieve 10% of the 15% per-capita electricity use reduction goal by 2015 (Order 82344). Utilities must also decrease peak demand by 15% by 2015. Beginning in 2016, electric utilities must ramp up programs to increase incremental savings by 0.2%, leveling out when savings reach 2% per year.

Electricity savings and demand reduction plans and cost recovery proposals were required to be filed with the PSC beginning on September 1, 2008 and every three years thereafter. On December 22, 2011, the PSC approved plans for the second three-year cycle (2012-2014) from Baltimore Gas & Electric (Case 9154, Order 84569), Delmarva Power and Light (Case 9156, Order 84569),  Potomac Electric Power Company (PEPCO) (Case 9155, Order 84569), Potomac Edison (PE) (Case 9153, Order 84569), and Southern Maryland Electric Cooperative (SMECO) (Case 9157, Order 84569). The plans for the third three-year-cycle (2015-2017) were approved on December 23, 2014 with Order 86785. This was the first program cycle for a natural gas program to be approved and implemented in the Washington Gas Light service territory (WGL) (Case 9362).

In 2011, the Commission approved the implementation of smart meters for Baltimore Gas and Electric and PEPCO. Delmarva Power and Light received Commission approval to implement smart meters in 2012, and the Southern Maryland Electric Cooperative was approved in 2013. 

Funding sources for energy efficiency programs are primarily through each utility’s EmPOWER Maryland surcharge on customer bills. Additionally, revenue streams resulting from demand response and energy efficiency resources being bid into the PJM BRA are used to offset the costs of the efficiency programs.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

Massachusetts has a restructured utility industry with competitive generation and retail markets. The distribution companies remain regulated and are required to offer energy efficiency and other demand-side management programs. The law governing these programs is Massachusetts General Law, Chapter 25 §19. The distribution utilities administer their own energy efficiency programs with collaborative input and oversight from the Massachusetts Energy Efficiency Advisory Council, a stakeholder body chaired by the state Department of Energy Resources (DOER). The Department of Public Utilities has regulatory responsibility.

All investor-owned gas and electric utilities and energy efficiency service providers have partnered together to sponsor the Mass Save initiative. Administrators work with the Massachusetts Department of Energy Resources to provide a wide range of services, incentives, trainings, and information promoting energy efficiency. A variety of electric and gas efficiency programs are also offered directly through IOUs and municipal utilities. Some municipal utilities also offer energy efficiency programs. Energy efficiency program funds must be allocated to customer classes, including the low-income residential subclass, in proportion to these customers’ contributions to those funds. At least 10% of the funding for electric energy efficiency programs and at least 20% of the funding for gas energy efficiency programs must be spent on low-income residential demand-side management and education programs.

In 2012, the state created a pilot self-direct program for large gas and electric customers. Five Largest Gas and Electric Customers Accelerated Rebate Pilot: Sections 5 and 54 of An Act Relative to Competitively Priced Electricity in the Commonwealth, requires the program administrators to implement a pilot program for their five largest energy users based upon specific customer locations in their respective service territories known as the voluntary accelerated rebate pilot program. Customers electing to participate shall be eligible for financial support of up to 100 per cent of the cost for qualified energy efficiency measures, as determined by the Program Administrator, using criteria included in the Three Year Plan. In addition, up to 15% of any accelerated rebate may be used for other improvements that support energy efficiency improvements made under a program approved by the department or emission reductions, including, but not limited to, infrastructure improvements, metering, circuit level technology and software

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found at MassSaveData.com. Detailed information is available at the state Savings and Spending tables at ma-eeac.org.  The self-direct pilot ended December 2015.

Last Updated: June 2016

Legislation passed in October 2008, Public Act 295, reestablished utility energy efficiency programs in Michigan. The state's previous programs had been discontinued in 1996.  Public Act 295 gave the Michigan Public Service Commission (MPSC) the authority to approve or reject efficiency plan proposals. To approve a plan, the MPSC must determine that the plan meets the utility system resource cost test and is reasonable and prudent.  

Utilities must offer programs to customers in all sectors (residential, low-income, commercial and industrial).  Eligible large electric customers can design and implement an energy efficiency plan for their own facilities and, if approved by their utilities, be exempt from paying the per-meter surcharge.  The utilities may administer the programs themselves, administer the programs jointly with other providers, select a nonprofit to administer the programs, or opt to work with the MPSC-selected program administrator (the Independent Energy Optimization Program Administrator).

Energy efficiency programs are supported by customer rates via a volumetric charge for residential customers and monthly "per meter" charges for commercial and industrial customers.  Each utility specifies these charges in plans that are filed with the MPSC. To the extent feasible, the utilities must use the charges collected from each customer rate class to fund efficiency programs for that rate class. Utilities use customer rate classes to attribute costs to different categories of customers based on how those customers incur costs.

Spending for each utility was capped at 0.75% of total sales revenues in 2009, 1.0% in 2010, 1.5% in 2011, and to 2.0% in 2012 and each year thereafter.  This was a rapid and significant change, since there were essentially no utility energy efficiency programs in Michigan in 2007.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

Minnesota's investor-owned utilities and publicly owned utilities offer a broad portfolio of customer energy efficiency programs. The programs have benefited from long records of consistent, strong support, allowing them to evolve and improve over many years.

In 2007, the Minnesota Legislature passed the Next Generation Energy Act of 2007 (Minnesota Statutes 2008 § 216B.241). Among its provisions, the Act sets energy-saving goals for utilities of 1.5% of retail sales each year. Regulated utilities recover the cost of energy efficiency programs through rate cases which include consideration of program costs and incentives. Program plans are made and approved on a 3-year cycle for investor-owned utilities and a 1-year cycle for electric cooperatives and municipal utilities. Approved CIP expenses are trued up annually.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

Until recently, utilities in Mississippi offered few energy efficiency programs. However, the Public Service Commission's Rule 29 required "Quick Start" programs for utilities in the state (Docket 2010-AD-2).

In 2014, each major utility serving customers in Mississippi filed a Quick Start Energy Efficiency Plan to be implemented between mid 2014 and 2016. The first three years will serve as a trial period for the companies' proposed programs. The Mississippi Public Service Commission will review and evaluate each of the programs on an annual basis and will make recommendations as to successful programs for companies to include in their comprehensive energy efficiency portfolios. Programs that will be made available to customers in the Quick Start Phase range from residential lighting programs and low-flow showerheads to Prescriptive and Custom programs for Commercial, Industrial, and Governmental Customers.

TVA also operates within the state and has also taken strides to advance energy efficiency in its service territory.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2015

Passage of the Missouri Energy Efficiency Investment Act in 2009 marked the beginning of a new era for customer energy efficiency programs in Missouri.

MEEIA Cycle 1 programs ended December 31, 2015 for Ameren Missouri (Case No. EO-2012-0142), KCP&L (Case No. EO-2014-0095) and KCP&L Greater Missouri Operations Company (Case No. EO-2012-0009).  In early 2016, the Commission approved MEEIA Cycle 2 DSM programs and DSIMs for Ameren Missouri (Case No. EO-2015-0055), KCP&L (Case No. EO-2015-0240) and KCP&L Greater Missouri Operations Company (Case No. EO-2015-0241).  All programs are expected to all be implemented not later than the second quarter of 2016 and will all terminate during the first quarter of 2019.  Utility 3-year cumulative annual energy and demand savings targets and budgets for MEEIA Cycle 2 include: 571 MWh, 167 MW and $157 million for Ameren Missouri;  198 MWh, 66 MW and $50 million for KCP&L; and 185 MWh, 106 MW and $53 million for KCP&L Greater Missouri Operations Company.   

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

Customer energy efficiency programs are run through individual utilizes in Montana. Utilities include a universal system benefits (USB) charge for each customer meter (see Mont. Code 69-8-402). The Montana Public Service Commission reviews and approves each regulated utility’s plans for the system benefits funding. Cooperative utilities also run programs, which are approved by the local cooperative governing board. Utilities may also choose to turn their funds over to the Montana Department of Environmental Quality to administer energy efficiency and renewable energy programs. Low-income programs are also run by the Department of Health and Social Services.

In addition to the USB programs, NorthWestern Energy has a separate Demand Side Efficiency portfolio that is budgeted at 2.5 times the USB budget.

Western Montana is part of the region served by the Bonneville Power Administration. Consequently, that part of the state is also included in the activities of the Northwest Power and Conservation Council and the Northwest Energy Efficiency Alliance. NorthWestern Energy is participating in a five-year smart grid demonstration project initiated by the Bonneville Power Administration with support from the U.S. Department of Energy. This project extended through 2014.

Montana has commercial, residential, and residential low income natural gas efficiency programs implemented by the utilities and their subcontractors.  Programs were mandated by statute in 1997 as part of natural gas restructuring.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: September 2016

All electricity customers in Nebraska are served by publicly owned utilities. More than 80 electric utilities offer a variety of energy efficiency programs for their customers: Nebraska natural gas utilities do not offer energy efficiency programs at this time.

There also are loan programs available to customers in the Nebraska Public Power District.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2015

Nevada returned to a traditional regulated utility structure after it restructured its industry in the late 1990s. Nevada’s vertically integrated, investor-owned utilities are required to perform integrated resource planning and related demand-side management programs. The utility companies collect an energy efficiency system benefits charge through customers' electric rates. The companies file general rate cases every three years, and DSM Program Costs and the associated lost revenues are recovered on an annual basis in the Deferred Energy Docket filed every March.

The utility companies administer the energy efficiency programs with oversight by the Public Utilities Commission of Nevada (PUCN). The companies propose a three-year budget and program plan to the PUCN as part of 20-year integrated resource planning requirements. The utility companies must have their program plans and budgets approved by the PUCN prior to implementation. Sierra Pacific Power and Southwest Gas offer natural gas efficiency programs. Investor-owned utilities aggressively pursued energy efficiency and grew program portfolios, achieving a high of 1.5% savings in 2009. Since then, savings have dropped to half that amount.

Nevada’s publicly owned utilities (cooperatives and municipal utilities) also provide some energy efficiency programs to their customers.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: September 2016

New Hampshire restructured its electric utility markets and has maintained support for its utility energy efficiency programs. In Order No. 23,574, issued November 2000, the Commission emphasized its commitment to energy efficiency programs that complement new energy markets and do not hinder their development. The Commission requested that utilities work together to design a set of "core" programs that are consistent in their design and meet the Legislature's directive to target cost-effective opportunities that may otherwise be lost due to market barriers.

On May 31, 2002, the New Hampshire Public Utilities Commission issued Order No. 23,982 in Docket No. DE 01-057, approving the implementation of “core” energy efficiency programs by the state’s electric utilities. This order established the basis for the NHSaves statewide energy efficiency program.

The PUC reviews and authorizes the utilities’ joint program plans and budgets annually. The utilities offer joint, statewide programs to gain the benefits of uniform planning, delivery, and evaluation. Within the umbrella of a statewide program, however, each individual utility incorporates flexibility in its implementation strategies and program delivery. The statewide program, NHsaves, uses shared marketing and information materials. NHSaves is funded by a systems benefits charge included in customer rates, of which 1.8 mills/kWh is for energy efficiency.

Natural gas programs are funded by a Local Distribution Adjustment Clause.

Additional funding for New Hampshire’s “core” customer energy efficiency programs is provided via the “Regional Greenhouse Gas Initiative” (RGGI). The legislation governing RGGI requires that the first dollar from the sale of greenhouse gas allowances is to go to fund electric energy efficiency programs

Some of New Hampshire’s publicly owned utilities (coops and municipal utilities) also offer customer energy efficiency programs, such as financing options for energy-efficient products. 

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: September 2016

Energy efficiency and renewable energy programs in New Jersey are administered by the Office of Clean Energy within the Board of Public Utilities (BPU) under the New Jersey Clean Energy Program. Prior to 2007, utilities were required to administer and implement energy efficiency programs with oversight from the BPU. In 2002, the New Jersey BPU began a re-assessment of this administrative structure and in 2007 program administration was turned over to the Office of Clean Energy (OCE). OCE meets monthly with energy efficiency and renewable energy program managers, the New Jersey Clean Energy Program, and the state's utilities to plan and coordinate programs. The OCE also chairs monthly meetings with stakeholders to solicit input on programs and budgets.

Today, investor-owned utilities are still responsible for collecting the Societal Benefit Charge (SBC) for the programs, but then transfer these funds to the state. The state’s societal benefit charge has repeatedly been reallocated away from energy efficiency programming. 

Individual energy efficiency and renewable energy programs are offered statewide to electric and gas customers of the public owned utility companies.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: August 2016

The Efficient Use of Energy Act (EUEA), enacted in 2005, directs New Mexico's public utilities to evaluate and implement cost-effective energy efficiency and load management programs in their resource portfolios (NMSA 1978, Chapter 62 Article 17).  By 2014, electric and natural gas utilities shall achieve savings of 5% of 2005 total retail kWh sales by 2014 and 8% of 2005 total retail kWh sales by 2020.  Program costs are 3% of customer bills for investor-owned electric utilities and shall not exceed 3% of total annual revenues for gas utilities.  Program costs and incentives may be recovered through a tariff rider or base rates.  Distribution cooperative utilities are to establish targets for energy efficiency and load management and implement those programs that are economically feasible and practical for their members and customers.  Cooperative members shall approve any such programs (NMSA 1978, §62-17-11).

The NM Public Regulation Commission (NMPRC) updated its rule implementing the EUEA in October 2014 (Case No. 13-00310-UT).  Beginning in 2015, each public electric and natural gas utility must file an annual application and report (17.7.2 NMAC).  Public Service Company of New Mexico shall file on March 1.  Southwestern Public Service Company shall file on May 1.  El Paso Electric Company shall file on July 1.  Natural gas utilities shall file on January 1.  Distribution cooperatives shall file an annual report on May 1.

Current energy efficiency cases before the NM PRC are as follows:  Public Service Company of New Mexico (Case No. 16-00096-UT), El Paso Electric Company (Case No. 16-00185-UT), Southwestern Public Service Company (Case No. 16-00110-UT), Zia Natural Gas Company (Case No. 16-00021-UT), Raton Natural Gas Company (Case No. 15-00247-UT).  New Mexico Gas Company received a variance to file in August 2016 and is expected to file shortly.   Currently, the following rural electric cooperatives reported participation in 2015 energy efficiency or load management programs plus planned 2016 programs:  Socorro Electric Cooperative, Farmers' Electric Cooperative, Lea County Electric Cooperative, Otero County Electric Cooperative, and Continental Divide Electric Cooperative.

Last Updated: August 2016

Customers of New York’s regulated electric distribution utilities and natural gas utilities support the statewide energy efficiency and other public benefits energy programs. These utilities include: Central Hudson Gas and Electric Corporation, Consolidated Edison Company of New York, Inc., New York State Electric and Gas Corporation, Niagara Mohawk Power Corporation, Orange and Rockland Utilities, Rochester Gas and Electric Corporation (RG&E), National Fuel Distribution Corporation, Corning National Gas Corporation, St, Lawrence Gas, Company, Inc., KeySpan Energy Delivery New York and KeySpan Energy Delivery Long Island.

Customers pay a non-bypassable system benefits charge (SBC) on their utility bills. A non-bypassable charge is a charge applied to all customer bills in a given region whether they receive service from a local utility or from a competitive supplier. The New York system benefits charge supports a comprehensive set of energy efficiency programs for customers, including residential, multifamily, low-income, commercial/industrial, and research and development programs. A state government authority, the New York State Energy Research and Development Authority (NYSERDA), administers the SBC programs. NYSERDA and its contractors implement energy efficiency programs. The NYPSC's June 2008 Order Establishing Energy Efficiency Portfolio Standard (EEPS) and Approving Programs (Case 07-M-0548) allows utility companies to administer some of the new, fast-track and expedited programs. Two public power authorities, the New York Power Authority and the Long Island Power Authority, also offer SBC-funded programs.

New York’s SBC funded programs date back to 1998 at which time the NYPSC authorized the SBC as a means of ensuring continued financial support for programs providing important public benefits that were historically funded through utility rates and were considered at risk as the state undertook deregulation.  The SBC was authorized for an initial 3 year period, and extended in 2001 and 2006 for an additional five years. In total, since 1998 the Commission has authorized approximately $1.2 billion for NYSERDA administered SBC programs delivered from 1998-2011 with a goal of 2,102 GWh.  The Commission authorized an additional $524 million for T&MD (also known as SBCIV) for the period 2012-2016.   

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

Individual utilities now administer energy efficiency and renewable energy programs in North Carolina with oversight and approval from the North Carolina Utilities Commission (NCUC).  In a 2011 South Carolina PSC-approved settlement agreement brokered between energy efficiency advocates and two merging utilities, Progress Energy Carolinas and Duke Energy Carolinas, the merging utilities agreed to new energy efficiency programs and targets between 2014 and 2018. The Settlement Agreement, signed in December 2011, sets an annual energy efficiency savings target of 1% of retail sales starting in 2015 and a 7% cumulative target from 2014 to 2018 for each utility.  PEC and DEC have operated their respective energy efficiency programs separately, but have started to replicate some programs system-wide. Current cost recovery mechanisms outlined in Docket No. E-7, Sub 1032), Docket No. E-2, Sub 931, and Docket No. E-22, Sub 464 include continuation of these goals. Duke Carolinas and Duke Progress may also earn a $400,000 incentive if they meet a goal of 1% incremental savings target.

Several municipal and cooperative utilities in North Carolina also administer customer energy efficiency programs.

In 2009, the NCUC approved Duke Energy Corp.’s Save-A-Watt program, which established energy efficiency goals and rate recovery for the utility over the past few years.  In August 2007, Session Law 2007-397 (Senate Bill 3) established the state’s first Renewable Energy and Energy Efficiency Portfolio Standard. This sets renewable energy and energy efficiency objectives for utilities. Each utility will submit a REEPS compliance plan to the NCUC, detailing its plans to achieve the required savings. The law applies to investor-owned, municipal and cooperative utilities.

Natural gas efficiency programs in the residential, residential low-income, and commercial sectors are delivered by the utilities, North Carolina State Energy Office, and the Department of Health and Human Services.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: August 2016

North Dakota’s utilities run a limited set of energy efficiency programs. Otter Tail Power offers a financing program for energy efficiency improvements as well as rebates. Northern Plains Electric Cooperative also offers a commercial energy efficiency loan program. Xcel energy and a number of municipal utilities offer rebates for energy-efficient appliances.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2015

With passage of SB 221 in 2008, Ohio established the foundation for the full range of customer energy efficiency programs now available. This act called on utilities to develop electric efficiency programs to meet newly proposed energy and peak demand savings targets. This legislation also explicitly included demand-response programs and transmission and distribution system improvements. Though the statute was pulled back in 2014, many utilities indicate they will continue to offer similar levels of efficiency programming.

Ohio’s regulated distribution utilities administer their own energy efficiency programs with oversight from the PUCO. The PUCO may also modify the utilities' proposed programs. Ohio natural gas utilities also run efficiency programs.

Financing options also are available to customers. The Advanced Energy Fund, instituted in 1999, supports an Energy Efficiency Revolving Loan Fund that is administered by the state.  A universal service rider, a type of surcharge, supports the Ohio Energy Loan Fund, providing low income bill assistance and efficiency incentives. The charge is $0.0001758 per kWh and adds up to $15 million per year to the fund.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: September 2016

All of Oklahoma's electric investor-owned utilities, Oklahoma Gas and Electric, Public Service Company of Oklahoma (PSO) and Empire District Company have implemented customer energy efficiency programs.  Under OAC 165:35-41-4, all electric utilities under rate regulation of the Oklahoma Corporation Commission (OCC) must propose, at least once every three years, and be responsible for the administration and implementation of a demand portfolio of energy efficiency and demand response programs within their service territories.

In Oklahoma, municipal and some cooperative electric providers do not fall under the regulatory authority of the Corporation Commission. Oklahoma Municipal Power Authority and Western Farmers Electric Cooperative also offer some customer energy efficiency programs. In 2009, the state legislature authorized municipal utilities and the Grand River Dam Authority to spend money encouraging energy conservation activities (S 293, enacted as Chapter 205).

Utility energy efficiency programs have been in place since 2008, when the Oklahoma Corporation Commission (OCC) initiated a "Demand Programs Collaboration" to examine issues associated with the funding and provision of customer energy efficiency programs by the state's energy utilities.  The collaborative meetings resulted in a permanent rulemaking for electric demand-side programs (Cause #200700007).  Both major electric investor-owned utilities, AEP Public Service Oklahoma (PSO) and Oklahoma Gas & Electric (OGE), implement programs targeting residential, low-income, and commercial customers, while large industrial customers have mostly opted-out of the programs.

Natural gas utilities also administer a growing portfolio of efficiency programs under the OAC § 165:45-23-1 et seq. Most recently, the Commission approved energy efficiency programs for CenterPoint Oklahoma for the 2014-2016 program cycle in Cause No. 201300033.

Oklahoma Natural Gas (Oklahoma Natural) energy efficiency programs for 2014 - 2016 were also approved, along with an increase in the program administration budget (see Cause No. 201300007).

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

The majority of Oregon's energy customers (73%) are located in investor-owned utility territory. These customers are served by energy efficiency programs administered by the nonprofit Energy Trust of Oregon (ETO). The ETO was created in association with electric utility restructuring to provide energy efficiency and renewable energy programs.

The state’s electric energy efficiency programs are required by legislation (SB 1149). Oregon's energy efficiency programs are also supported by strong regional organizations—the Bonneville Power Administration, the Northwest Energy Efficiency Alliance, and the Northwest Power and Conservation Council. Some utility customers are served by ETO, while others are served by utilities directly. The ETO has achieved significant success in a short time. Since its creation in 2002, the organization has rapidly developed and implemented a comprehensive menu of programs and services for customer energy efficiency.

Oregon's public purpose charge (3% of the total revenues collected by the utilities from customer electric bills) provides roughly $60 million per year to support energy efficiency, renewable energy, and low-income programs in Oregon. This funding supports the Energy Trust of Oregon's electric programs as well as electric low-income programs provided by Oregon Housing and Community Services, a state agency. In 2007, SB 838 extended the public purpose charge through 2025. The ETO also receives funding from natural gas utilities (NW Natural and Cascade Natural Gas) to administer natural gas efficiency programs.

Self-direct options are available in Oregon. The Eugene Water and Electric Board offers a self-direct program in which customers receive contractual obligations to achieve a certain kilowatt-hour of savings annually based on the percentage of load a customer represents and the average conservation savings achieved by the industrial sector in prior years.  Self-direct customers continue to pay the regular cost-recovery mechanism (CRM) of 5% but receive a monthly rate credit equal to conservation fee minus utility measurement and verification costs.  Customers who fail to meet their goals must repay a proportional amount of the rate credit.  Also the Oregon Department of Energy offers a self-direct option to customers with more than 1 MW. More information on large customer self-direct programs can be found in the ACEEE report, Follow the Leaders: Improving Large Customer Self-Direct Programs.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: September 2016

Pennsylvania utilities have significantly expanded energy efficiency program offerings in recent years since the enactment of the state’s EERS established by Act 129 in 2008. In accordance with this law, each electric distribution company filed an energy efficiency and conservation ("EEC") plan with the PUC in July 2009. Plans submitted by each company explain how energy reductions are to be met, including a contract with a conservation service provider, and provide for energy efficiency measures for low-income households. The PUC may approve, reject, or modify the plans.

Under Act 129, the electric distribution companies’ energy efficiency and conservation plans propose a cost-recovery tariff mechanism to fund the energy efficiency and conservation measures and to ensure recovery of reasonable costs. The utilities can also recover the costs through a reconcilable adjustment mechanism. 

There are additional EE programs for natural gas customers of PGW (Phila. Gas Works) and electric customers of UGI Electric.  Both of these programs' offerings are voluntary but approved by the PUC.  UGI Electric is one of four small EDCs that are below the threshold for compliance with Act 129 (EERS) but which were encouraged to adopt voluntary programs for their customers.  Additionally, PA has 13 rural electric cooperatives and several smaller municipalities that are not regulated by the Commission.  The rural electric cooperatives do offer some electric efficiency programs/incentives.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

Energy efficiency programs are offered by Rhode Island's regulated distribution utilities. The major investor-owned utility operating in the state, Narragansett Electric, is a National Grid Company and offers a comprehensive slate of programs that parallel National Grid's offerings in Massachusetts. Hearings are held once a year before the Rhode Island Public Utilities Commission to review program plans. A collaborative of stakeholders reviews these plans and makes recommendations to the RI PUC on the programs. Program costs are trued up annually each May.

The Comprehensive Energy Conservation, Efficiency and Affordability Act of 2006 greatly increased the role and requirements for acquisition of demand-side resources—requiring utilities to acquire all cost-effective energy efficiency. The act also created a statewide natural gas conservation program.

Utility programs are funded by a "conservation and load adjustment factor"—a rider assessed on all customer rates established as part of Rhode Island's restructuring legislation. There is a minimum floor on this surcharge of 2 mills perkilowatt-hour for energy efficiency paid by customers of regulated distribution utilities as a non-bypassable public benefits fee specifically for energy efficiency programs.  The Rhode Island Public Utilities Commission annually reviews and authorizes utility demand-side management program plans, including budget amounts. The fee to support energy efficiency is a floor; actual spending amounts have exceeded this minimum requirement.

Approved energy efficiency charges for 2016 are $0.00124/kWh for electric programs and $0.781/dekatherm for residential customer and $0.637/dekatherm for C&I customers.  A Demand Side Management program for Pascoag Utility District also exists, with a DSM charge of $0.0002/kWh.  A RGGI funded pilot EE program is also being deployed by the Office of Energy Resources to Block Island Power Company ratepayers. 

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

In a settlement agreement brokered between energy efficiency advocates and two merging utilities, Progress Energy Carolinas and Duke Energy Carolinas, the merging utilities agreed to new energy efficiency programs and targets for the years 2014-2018. The Settlement Agreement, signed in December 2011, sets an annual energy efficiency savings target of 1% of retail sales starting in 2015 and a 7% cumulative target over the 2014-2018 time period for each utility. Achievement of the target will require successful development, regulatory approval and implementation of energy efficiency programs. 

Funding for demand-side management and energy efficiency programs is included in the utilities’ base rates. In April 2010, Senate Bill 1096 authorized electric cooperatives and municipal electric utilities to implement financing systems for energy efficiency improvements.

South Carolina’s electric cooperatives offer customers some programs, including an on-bill financing program that allows members to reduce the upfront cost of energy efficiency investments. Leveraging the cooperatives’ existing relationships with members, the program utilizes funds from USDAs Rural Economic Loans and Grants Program (REDLG) to offer loans to customers, which are paid back on utility bills. The loans are tied to utility bills and the building’s meter, removing split incentives for homeowners who do not wish to stay in their home for the life of the loan. Electric Cooperatives of South Carolina (ECSC) estimates the program will impact 185,000-195,000 homes.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

South Dakota's utilities run limited energy efficiency programs. Several utilities offer commercial and residential rebate programs, and Otter Tail Power also runs a financing program for commercial and residential customers.

The South Dakota Energy Smart Initiative brings together utility partners to pledge their support of improving energy efficiency in South Dakota. Partners include both investor-owned and publicly owned utilities, which report numerous plans and new efforts to offer energy efficiency programs and services to their customers. 

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

In June 2007, the Tennessee legislature approved a joint resolution calling for the Tennessee Valley Authority (TVA), the largest publicly-owned electric utility in the country, to initiate large-scale efforts to improve energy efficiency. House Joint Resolution Number 472 noted, "[E]nergy conservation can easily meet and exceed the growing demand for electricity; and….TVA used energy efficient means of creating power in the 1970s to supplant the need to build new power plants." In response, TVA has released a suite of energy efficiency programs, for all customer segments, including but not limited to: home energy evaluations, rebates and attractive financing for efficiency measures, and technical/advising services.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

Texas law requires all electric transmission and distribution utilities (TDUs) to meet energy efficiency goals — currently, 30 percent of load growth (see information below on Energy Efficiency Resource Standards for more information). To meet these goals, utilities administer incentive programs. Retail electric providers and energy efficiency service providers implement the programs. All programs are designed to reduce system peak demand, energy consumption, and/or energy costs and are available to customers in all customer classes. 

An Energy Efficiency Cost Recovery Factor (EECRF) rate schedule is included in tariffs and permits utilities to recover the costs of providing energy efficiency programs. The commission also has the option of approving an energy charge or a monthly customer charge for the EECRF.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

Utah's funding and commitment to utility energy efficiency programs has increased significantly over the past several years. The state's largest investor-owned utility, Rocky Mountain Power (RMP) (PacifiCorp), administers and provides a comprehensive set of energy efficiency programs as part of integrated resource planning. The Utah Public Service Commission (UPSC) reviews and approves these plans and associated program plans and budgets. Electric efficiency programs are funded through a tariff rider on customer bills, as allowed under Utah Code Section 54-7-12.8(2),which states that the commission may approve a tariff under which an electrical corporation includes a line item charge on its customer bills to recover the costs incurred by the electrical corporation for demand side management. In March 2015, the PSC approved RMP’s request to adjust its utility bill surcharge to pay for demand-side management (DSM) programs to 3.6%.

Questar Gas, the only natural gas utility regulated by the UPSC, also administers energy efficiency programs.  In 2006, the UPSC approved the Conservation Enabling Tariff (CET) allowing Questar to collect a fixed revenue-per-customer on a monthly basis in exchange for promoting customer energy efficiency programs; demand-side management (DSM) programs; and a low-income assistance program. Questar provides a wide range of energy efficiency programs for residential and business customers.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

Vermont pioneered the model of a statewide "energy efficiency utility" (EEU) after enacting legislation in 1999 authorizing Vermont Public Service Board (PSB) to collect a volumetric (per kWh) charge on all electric utility customers’ bills to support energy efficiency programs, called the Energy Efficiency Charge (EEC). PSB created the EEU designation that Efficiency Vermont (EVT) and Burlington Electric Department (BED) currently operate under to invest in programs and services that save money and conserve energy. Vermont Gas Systems offers natural gas efficiency service within its territory. Natural gas efficiency programs are supported by legislation and regulation (30 V.S.A. Section 235(d); Docket No. 5270 VGS-1, 2) and began in 1993. The Public Service Board designated it an EEU with a 12 year Order of Appointment to deliver natural gas energy efficiency services in April 2015 (see Docket 7676).

New since 2015 is the passage of Act 56 of 2015 which creates a Renewable Energy Standard in Vermont. It creates an energy transformation obligation for electric distribution utilities, in which they must produce an increasing amount of fossil fuel use reductions attributable to their customers. They may meet the obligation through the use of more efficient heating systems (such as heat pumps) or through building weatherization, or even the use of more efficient or electric vehicles. The obligations begin in 2017 with an amount equivalent to 2% of the utility's sales, rising to 10% by 2032.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

HB 2506, enacted in, authorized investor-owned electric utilities to recover the costs of designing, implementing, and operating energy efficiency programs by adjusting their rates, if such programs are found to be in the public interest.  The Virginia State Corporation Commission may allow utilities to recover reductions in revenue related to energy efficiency programs, to the extent the revenue is not recovered through off-system sales.

Dominion Power now offers a small set of programs for its residential and commercial customers, and several gas utilities offer rebates. The Tennessee Valley Authority also runs efficiency programs in Virginia. 

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

Customers in Washington are served by a wide variety of utilities—public utility districts, municipal utilities (including one of the nation's largest municipal utilities, Seattle City Light), investor-owned utilities, and rural cooperatives. Energy efficiency programs are provided by each type. Investor-owned utilities carry out energy efficiency programs with oversight by the state's regulatory body, the Utilities and Transportation Commission. Publicly-owned utilities provide programs to their members with oversight by their respective governance bodies. The Northwest Energy Efficiency Alliance, a regional organization seeking to transform markets for energy efficiency, provides a strong unifying force for the many individual utility programs offered across the state—particularly for products and services most amenable to market transformation approaches, such as consumer products and building design, construction and operation. BPA also has played and continues to play a strong leadership role in supporting individual utilities' efforts.

Washington is a non-restructured state and has no public benefits funding to support programs. Investor-owned utilities recover the costs of energy efficiency programs through tariff riders. Program costs are reported and adjusted annually in proceedings before the Utilities and Transportation Commission. Most publicly-owned utilities in Washington also provide funding for energy efficiency programs and services.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

Recent progress has been made for energy efficiency and demand-side management programs as a result of case 09-0177, which ordered Appalachian Power to submit an energy efficiency plan with its 2010 rate case. The final order was issued in 2010. It directed power companies to implement approved programs, which included: low-income weatherization; residential home audit; residential lighting; and commercial/industrial prescriptive incentives. In 2012, several other utilities followed suit, as Monongahela Power and Potomac Edison began offering limited programs. New programs were approved for Appalachian Power in Case No. 14-0345-E-P.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

Wisconsin has a statewide energy efficiency and renewable resources program called Focus on Energy, which is funded through a non-bypassable charge on customer bills. There has been no market restructuring or deregulation, so vertically integrated, investor-owned utilities are still regulated providers. In addition to Focus on Energy, utilities provide voluntary energy efficiency programs. Act 141 allows investor owned utilities (IOUs) to operate voluntary programs with funding in addition to the 1.2 percent or gross operating revenues they contribute to Focus on Energy. These voluntary programs need to be approved by the Public Service Commission and currently, three IOUs operate some level of voluntary programs.

Under 2005 Wisconsin Act 141, oversight of Focus on Energy was transferred to the Public Service Commission of Wisconsin. Act 141 also requires municipal and retail electric cooperative utilities to collect an average of $8 per meter to fund energy efficiency programs. Municipal and retail electric cooperative utilities can collect the dollars and participate in the Focus on Energy program or can elect to operate their own Commitment to Community programs.

Program cost recovery is handled via individual rate cases. A conservation escrow account is used for voluntary energy efficiency and programs. Program costs are recovered through rates, the money goes into an escrow account, and then the costs are adjusted, or "trued up," in the next rate case. If utilities spend more than the approved budget, they generally receive cost recovery through the true up. If actual spending is less than the escrow amount, the PSCW "trues it up" through a reduction in revenue requirement for the next rate period.

The Public Service Commission of Wisconsin oversees the statewide programs. The investor- owned utilities formed the non-profit Statewide Energy Efficiency and Renewables Administration (SEERA) to fulfill their obligations under Act 141. SEERA is required to fund Focus on Energy and to contract on the basis of competitive bids, with one or more persons to administer the programs. Focus on Energy has energy efficiency programs in two areas: (1) residential energy efficiency and renewable energy, and (2) non-residential energy efficiency and renewable energy (including the business, governmental, institutional, industrial and agricultural sectors).Focus on Energy also has a Research Portfolio Program which funds research projects to obtain new knowledge in the areas of energy efficiency and renewable energy program design and delivery in Wisconsin..

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

Wyoming Public Service Commission approved demand-side-management programs for Rocky Mountain Power (RMP) that began January 1st, 2009 (see Docket No. 20000-264-EA-06). These programs represent the state’s first significant energy efficiency activity.

RMP’s 2011 Integrated Resource Plan (IRP) reflected a significant increase in energy efficiency over past planning cycles. The utility forecasts energy efficiency additions through 2030. Currently, RMP offers several rebate programs RMP is responsible for about 57% of electricity sales in Wyoming. Cheyenne Light and Power, Black Hills Power, Carbon Power & Light, Lower Valley Energy and Questar Gas also run limited sets of energy efficiency programs.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016