State and Local Policy Database

Energy Efficiency Resource Standards

An energy efficiency resource standard (EERS) is a quantitative, long-term energy savings target for utilities. Under direction from this policy, utilities must procure a percentage of their future electricity and natural gas needs using energy efficiency measures, typically equal to a specific percentage of their load or projected load growth. Energy savings are typically achieved through customer, end-use efficiency programs run by utilities or third-party program operators, sometimes with the flexibility to achieve the target through a market-based trading system.

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: June 2017

In June 2010, Governor Sean Parnell signed House Bill 306 into law. The legislation established Alaska's state energy policy, which included an aggressive renewable electricity goal, as well as a goal to reduce per capita electricity use in the state by 15% by 2020. This goal must be translated into specific requirements for utilities to achieve savings of a specific amount to qualify as an EERS.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: June 2016

Summary: Cumulative annual electricity savings of 22% of retail sales, and natural gas savings of 6%, by 2020.

In 2010 the Arizona Corporation Commission ordered that, by 2020, each investor-owned utility must achieve cumulative annual electricity savings of at least 22% of its retail electric sales in calendar year 2019 through cost-effective energy efficiency programs (see Docket No. RE-00000C-09-0427 Decision No. 71436 and Decision No. 71819). Cumulative annual targets for electricity savings are specified for each year, beginning at 1.25% in 2011, and based on retail electricity sales in the previous calendar year.  Electric distribution cooperatives must propose an annual energy savings goal that is at least 75% of the standard in a given year.

Peak demand savings achieved through demand response programs are allowed to qualify for up to two percentage points of the total 22% cumulative goal (based on a conversion of demand to energy), but there is a limit to the amount of peak demand savings that can be applied to the energy efficiency standard in any given year. Utilities can count energy supply from combined heat and power systems that do not qualify under the state's Renewable Energy Standards towards the energy efficiency standard, as well as one-third of the measured savings from new building codes. Utilities are allowed to credit energy savings achieved during 2005-2010 towards the requirements beginning in 2016.

Utilities must submit an annual or biennial implementation plan to detail progress in meeting goals and estimate cost and energy savings for programs over the next two calendar years. Utilities may recover the prudent costs of energy efficiency programs through a DSM tariff and the decision also allows utilities to request the Commission to consider the use of performance incentives to assist in achieving the goals.

Arizona also has natural gas efficiency standards requiring 6% cumulative savings by 2020 (see Docket No. RG-00000B-09-0428 Decision No. 71855). As in the case of electric cooperatives, gas cooperatives must propose annual savings goals that achieve 75% of the standard; propane companies must meet 50% of the standard. Energy savings from renewable energy projects sponsored by an affected utility may count towards meeting up to 25% of the standard in any given year.

Salt River Project has also set long-term energy savings goals through it's Sustainable Portfolio Principles. These Principles establish targets for the utility through its 2020 fiscal year, and ramp up to 2% beginning in FY 2018.

Last Updated: July 2016

Summary: Incremental savings targets began at 0.25% in 2011, ramping up to 0.75% for 2013 – 2014, 0.9% annually for 2015 – 2018 and 1.00% for 2019. Yearly incremental natural gas savings of 0.5% for 2017-2019.

In December 2010, Arkansas PSC adopted an energy efficiency resource standard (see Docket No. 08-144-U). The targets set by the Public Service Commission were moderate, rising from a yearly reduction of 0.25% of total electric kilowatt hour (kwh) sales in 2011, to 0.5% in 2012, and 0.75% in 2013, Natural gas targets are 0.2% in 2011, 0.3% in 2012, and 0.4% in 2013.

In January 2013, the Public Service Commission issued an order in Docket 13-002-U seeking comment on proposed savings goals for the next three-year program cycle. The proposed goals by the PSC staff would double the previous yearly electricity savings levels to 1% of sales in the first program year, 1.25% in the second, and 1.5% in the third.  Proposed savings targets for natural gas would more than double the previous targets: 0.6%, 0.8%, and 1% per year. Based on stakeholder feedback, the PSC rescheduled the filing date to June 1, 2014 for the next three-year program cycle, and pushed back the start year so that the new program cycle is 2015-2017. For 2014, the PSC directed program administrators to use the energy savings targets, budgets, and the incentive structure previously approved for Program Year 2013 (unless program administrators seek to make modifications to program plans for approval by the PSC). In September 2013, the PSC issued an order setting an electricity savings target of 0.9% and a natural gas savings target of 0.6% for 2015. These targets were extended through 2016.

In December 2015, the PSC issued an order extending the 0.9% electricity savings target through 2018, ramping up to 1.00% in 2019, with a natural gas savings target of 0.5% for 2017-2019.

Last Updated: June 2017

Summary:  Electric: Long-term goals average about 1.15% of retail sales electricity through 2024. Natural Gas: Incremental savings target of 0.56% through 2024.

Following California’s 2001 electricity crisis, the main state resource agencies worked together along with the state’s utilities and other key stakeholders and developed the California Integrated Energy Policy Report that included energy savings goals for the state’s IOUs. The CPUC formalized the goals in Decision 04-09-060 in September 2004. The goals called for electricity use reductions in 2013 of 23 billion kWh and peak demand reductions of 4.9 million kW from programs operated over the 2004–2013 period. The natural gas goals were set at 67 MMTh per year by 2013.

The California Legislature emphasized the importance of energy efficiency and established broad goals with the enactment of Assembly Bill 2021 of 2006. The bill requires the California Energy Commission (CEC), the California Public Utilities Commission (CPUC) and other interested parties to develop efficiency savings and demand reduction targets for the next 10 years.  Having already developed interim efficiency goals for each of the IOUs from 2004 through 2013, the CPUC developed new electric and natural gas goals in 2008 for years 2012 through 2020, which call for 16,300GWh of gross electric savings over the 9-year period (see CPUC Decision 08-07-047). See Decision 09-09-04 for 2010-2012 energy efficiency portfolios and Decision 14-10-046 for 2015 goals.

California’s current targets are embedded in the approved 2016-2024 program portfolios and budgets for the state’s IOUs, which calls for incremental electricity savings of about 1.15% (see CPUC Decision 15-10-028)

In 2015, California essentially doubled its energy efficiency goals by passing SB 350.  This bill  requires the State Energy Resources Conservation and Development Commission to establish annual targets for statewide energy efficiency savings and demand reduction that will achieve a cumulative doubling of statewide energy efficiency savings in electricity and natural gas final end uses of retail customers by January 1, 2030. The bill would require the PUC to establish efficiency targets for electrical and gas corporations consistent with this goal. The bill would require local publicly owned electric utilities to establish annual targets for energy efficiency savings and demand reduction consistent with this goal.  The CEC's SB 350 energy efficiency target setting efforts are anticipated to be completed in late 2017. In May 2016 the CPUC reported initial estimates of the impact of SB350, available here

Additional efforts that will impact savings levels include recent all-source procurement RFOs that took place in Southern California.  These resulted in 145 MWs of procurement and are expected to come on line between 2016-2022.  The recent Diablo Canyon Power Plant retirement proposal includes replacement of some of the energy with energy efficiency.  The first phase of this, if approved, would be for 2,000 GWhs of savings that commence in the years 2019-2024.

Last Updated: June 2017

Summary: Electric: PSCo savings targets of 0.8% of sales in 2011, increasing to 1.35% of sales in 2015, after which time a flat goal of 400 GWh per year is in place through 2020. Black Hills follows PSCo targets. Natural Gas: Savings targets commensurate with spending targets (at least 0.5% of prior year’s revenue).

The Colorado legislature passed HB-07-1037 in April 2007, which amended Colorado statutes C.R.S. 40-1-102 and 40-3.2-101-105 by requiring the Colorado Public Utilities Commission (COPUC) to establish energy savings goals for investor-owned electric and gas utilities.  The EERS statute does not set a fixed schedule of statewide percentages of energy savings to be achieved by particular years, nor does it require the acquisition of all cost-effective energy efficiency resources. Instead, it sets an overall multi-year statewide goal for investor-owned electric utilities of at least five percent of the utility's retail sales in the base year (2006) to be met by the end of 2018, counting savings in 2018 and including savings from DSM measures installed starting in 2006.  The statute includes a similar goal for reduction of peak demand of 5% the retail system peak in 2006. For gas utilities, the statute required the PUC to open a new proceeding to develop gas savings targets and spending levels. The law empowers the PUC to set interim goals for utilities and to modify goals.

COPUC has modified targets several times since 2008 (see Docket No. 07A-420E, Decision C08-0560Docket No. 08A-518E, Decision No. R09-0542). In May 2011, COPUC approved new goals for Public Service Company of Colorado (PSCo) for the 2012-2020 period. The goals begin at 1.14% of sales in 2012, ramping up to 1.35% in 2015, and reaching 1.68% in 2020. The goals set out to achieve 3,984 GWh in the nine-year period (see Docket No. 10A-554EG, Decision No. C11-0442). Black Hills Energy’s adopted efficiency plan follows PSCo targets. In 2013, the Colorado PUC began a process to revisit certain aspects of the goals and incentive mechanisms for PSCo in Docket 13A-0686EG, and laid out a flat annual savings target of 400 GWh through 2020 in Decision No. C14-0731.

For investor-owned natural gas utilities, the EERS legislation structured the requirement in two parts. First, the natural gas IOU’s must set DSM spending targets of more than 0.5% of revenues from customers in the prior year. Energy savings targets are then established by COPUC commensurate with spending and stated in terms of quantity of gas saved per dollar of efficiency program spending.

Last Updated: September 2016

Summary: Requirement for acquisition of all cost-effective efficiency resources, equivalent to yearly incremental electricity savings targets of ~1.51%, natural gas savings of 0.61% through 2018.

The state's renewable portfolio standard (RPS), established in 1998 and revised thereafter, requires that electricity providers and wholesale suppliers obtain 27% of their retail load from renewable energy and energy efficiency by 2020. Beginning in 2006, energy efficiency and combined heat and power measures were considered "Class III sources" and required to meet a certain percentage of load. However, Public Act 13-303 revised the RPS to preclude certain conservation and load management programs from qualifying as a Class III source beginning January 2014.

The 2007 Electricity and Energy Efficiency Act (Public Act 07-242) took an important step in recognizing the value of energy efficiency by requiring utilities to achieve resource needs through "all available energy efficiency resources that are cost-effective, reliable and feasible." The Department of Public Utility Control interpreted this mandate overly restrictively, however, focusing only on capacity needs, and did not approve funding increases to achieve all cost-effective energy efficiency (Docket 10-02-07) until recently.

Public Act 11-80 (2011) created the Department of Energy and Environmental Protection (DEEP), into which was integrated the DPUC, renamed the Public Utilities Regulatory Authority (PURA). DEEP has several goals related to energy: to reduce the cost electricity in the state; to ensure the reliability and safety of the state's energy supply; to increase the use of clean energy; and to develop the state's energy economy.  The Act requires DEEP to review the state's energy and capacity resource assessment every two years and to develop an integrated resources plan that identifies how best to meet projected demand for electricity and to lower the cost of electricity through a mixture of supply and demand side measures, including energy efficiency, load managementdemand response, combined heat and power facilities, distributed generation and other emerging energy technologies.

In 2013, the state passed Public Act 13-298, An Act Concerning Implementation of Connecticut’s Comprehensive Energy Strategy. The Act contained provisions requiring gas and electric distribution companies to create triennial energy conservation plans and increased funding levels to the point where the state’s all cost-effective mandate is achievable. In December 2013, PURA approved rate adjustments requested by utilities for implementation of their efficiency plans.

Last Updated: June 2017

Summary: Delaware does not have a mandatory EERS. Considered voluntary until final implementation rules are established.

Delaware established energy savings targets in 2009 with the passage of SB 106, the Energy Efficiency Resource Standards Act of 2009, but final implementation rules have yet to be established. The Act set cumulative targets for the reduction of energy consumption and peak demand through electricity and natural gas energy efficiency programs: a 15% reduction in electricity consumption, a 15% reduction in peak electricity demand, and a 10% reduction in natural gas consumption by 2015, based on 2007 retail sales.  The targets apply to all electric and natural gas utilities in the state.  The Act also requires utilities to first consider cost-effective electricity demand response and demand-side management strategies for meeting base load and load growth needs before any increase in energy supply.

The Act set up an eleven-member stakeholder workgroup to assist in developing key regulations, assessing the feasibility and impact of pursuing the established targets, reviewing progress annually, and recommending changes to the plan as needed.  In its June 2011 report, the workgroup identified several issues that undercut the effectiveness of the policy. First, the level of proposed funding (gathered through an energy efficiency charge on customer bills) made it unlikely that the state would meet the targets established in the Energy Efficiency Resource Standards Act. Second, the workgroup found that conflicting state statutes muddied the institutional structure around efficiency program implementation and accountability, making it impossible to determine which entity (utilities, the Sustainable Energy Utility, or the Public Service Commission) has accountability for EERS performance results and the development of enforcement mechanisms.  

Given the lack of final implementation rules, and the funding and institutional challenges outlined above, Delaware's energy savings targets are considered voluntary.

Established by SB 150, House Amendment 2 in 2014, the EEAC convened to establish guidance on cost-effective energy efficiency programs. The EEAC has established voluntary energy savings targets (electric and gas), similar to the EERS. Utilities and program administrators are encouraged through the EEAC to develop and implement energy efficiency programs that will yield a reduction in electric and natural gas usage. Programs plans are designed around a 3-year timeframe but have the ability to be updated annually, with annual targets increasing each year to reach the cumulative 3-year goal. The incremental energy efficiency targets are incremental annual savings as a percent of forecasted sales. They are as follows:

Incremental Annual Savings: (2016/2017) E – 0.4% G – 0.2%. (2018). E-0.7% G-0.3%. (2019) E-1.0% G-0.5%

Last Updated: July 2017

The Clean and Affordable Energy Act of 2008 (CAEA) requires the Mayor, through DOEE, to contract with a private entity to conduct sustainable energy programs on behalf of the District of Columbia. The CAEA authorizes the creation of a District of Columbia Sustainable Energy Utility (DCSEU) and designates the SEU to be the one-stop resource for energy efficiency and renewable energy services for District residents and businesses. The DCSEU operates under a performance-based contract with DOEE, with input and recommendations from the SEU Advisory Board, and oversight from the Council of the District of Columbia.

Laws allow for multi-year performance contracts, and as a result DCSEU will be able to operate on a multi-year contract with a 5-year base period and another 5-year extension period.  This contract has energy use reduction targets for electricity and natural gas. The target is 0.85% of 2009 electric and gas consumption in D.C. However, this goal is not mandatory and DCSEU earns performance compensation at levels below that.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: June 2017

Florida does not have an EERS. Past energy reduction targets were not implemented due to insufficient funding, and existing savings goals are negligible.

The Florida Energy Efficiency and Conservation Act (FEECA -- Sections 366.80-85 and 403.519 of the Florida Statutes) established the authority for the Florida Public Service Commission to set targets for energy and peak demand savings, and to require each affected utility to develop and implement energy efficiency programs.  The Public Service Commission must revisit the goals at least every five years.  Specific electricity and peak demand savings goals were set for each of the seven "FEECA utilities" most recently in 2014 for 2015 through 2024, averaging 990.6 GWh annually. These goals are lower than those approved by the Commission in 2009. The Commission identified fewer programs as cost-effective due to more stringent building codes and appliance efficiency standards, as well as lower avoided costs resulting from lower natural gas prices. The most recent status of Florida's Energy Efficiency and Conservation efforts for utilities under the Commission's oversight can be found in the Commission's December 2016 FEECA Report.  A comprehensive description of the goal-setting process and methodology can be found in Order No. PSC-14-0696-FOF-EU

Last Updated: June 2017

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: June 2017

Summary: Cumulative electricity savings of 4,300 GWh by 2030 (equal to approximately 30% of forecast electricity sales, or 1.4% annual savings).

Hawaii’s renewable portfolio standard (RPS) was codified in HRS §269-91, et seq., and amended in 2006, 2008, and 2009. The RPS requires investor-owned utilities and rural electric cooperative utilities to use “renewable electrical energy” to meet 10% of net electricity sales by the end of 2010, 15% by 2015, 25% by 2020, and 40% by 2030. Savings from energy efficiency programs and combined heat and power systems (among other measures) may count towards meeting up to 50% of the standard through 2014.  The Public Utilities Commission may assess penalties against a utility for failing to meet the RPS, unless the failure was beyond the reasonable control of the utility.

Beginning in 2015, electrical energy savings will no longer be able to count toward Hawaii’s RPS, and will instead count towards Hawaii’s Energy Efficiency Portfolio Standard (EEPS), which was established in 2009 with the passage of HR 1464.  Hawaii's EEPS sets a goal to reduce electricity consumption by 4,300 GWh by 2030 (equal to approximately 30% of forecast electricity sales, or 1.4% annual savings).  Renewable displacement or offset technologies, including solar water heating and sea-water air-conditioning district cooling systems, count towards the EEPS after 2015.

The Public Utilities Commission (PUC) must establish interim goals to be achieved by 2015, 2020, and 2025, and may adjust the 2030 standard to maximize cost-effective energy efficiency programs and technologies. The PUC has yet to establish rules for the stand-alone EEPS, including eligible technologies; responsibility for doing so falls on the EEPS Technical Working Group established in 2012.  Current energy efficiency targets in Hawaii are set in HI PUC Order, Docket No. 2010-0037, and are subject to revision.

Hawaii has no energy efficiency resource standard in place for natural gas due to the fact that natural gas plays only a minimal role in the state's overall energy portfolio.

Last Updated: July 2015

There is currently no EERS in place.  

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2017

Summary: Electric: Vary by utility, averaging 1.77% of sales from 2018 to 2021, 2.08% from 2022 to 2025, and 2.05% from 2026 to 2030.  Natural Gas: 8.5% cumulative savings by 2020 (0.2% incremental savings in 2011, ramping up to 1.5% in 2019). 

The scope of energy efficiency activity in Illinois began a dramatic expansion in July 2007, when the state legislature passed the Illinois Power Agency Act (IPAA), which includes requirements for energy efficiency and demand response programs. The IPAA establishes an EERS that sets incremental annual electric and natural gas savings targets based on previous year’s consumption, beginning on June 1 of that year (see § 220 ILCS 5/8-103). The electric savings requirement began at 0.2% in 2008 and ramped up to a requirement of 2% annual savings in 2015 and thereafter. The natural gas goals began in 2012 with a 0.2% reduction from 2011 sales and ramp up to 1.5% annual savings by 2019 (see Public Act 96-0033). However, due to a 2.0% rate impact cap, regulators had approved lower targets with incremental electric savings targets varying by utility from about 0.5% to 0.7% per year.

Public Act 99-0906 was passed in December 2016 with an effective date of June 1, 2017.  The legislation requires ComEd to achieve a cumulative 21.5% reduction and Ameren to achieve a 16% reduction in energy use by 2030, and also requires $25 million per year to be spent on programs to help low-income homes become more efficient. Goals are measured as the change in cumulative savings which consider both newly acquired savings as well as lost savings due to previously administered measures reaching the end of their Expected Measure Life.

Some of the provisions of the Act include adding 220 ILCS 5/8-103B to the Public Utilities Act. This Section shifts responsibility of the DCEO-administered electric efficiency programs to the various utilities. Public Act 99-0906 also revises the gas utility statute (220 ILCS 5/8-104) and assigns the gas utilities the responsibilities that were previously assigned to DCEO as well. Public Act 99-0906 also increases the cost cap (previously 2.0%) to 3.5% for the first four years,  3.75% for the four years that begin on 2022, and 4% for the five years that begin on January 1, 2026. For January 1, 2031 and beyond there is no reference to a cost cap. The new Act also eliminates the provisions for energy efficiency procurement by the Illinois Power Agency.

Last Updated: June 2017

Although the state has implemented savings targets in the past, no EERS is currently in place.

Indiana’s Commission ordered all jurisdictional electric utilities to begin submitting three-year DSM plans in July 2010 indicating their proposals and projected progress in meeting yearly savings goals outlined by the Commission. The goals began at 0.3% incremental savings in 2010, increasing to 1.1% in 2014, and leveling at 2% in 2019. Load management and direct load control initiatives, including peak-shaving, which result in net-energy savings was counted towards the goal. 

The decision also outlined a portfolio of core programs, called Energizing Indiana, offered by all affected utilities. The statewide approach offered consumers a uniform set of energy efficiency programs, using coordinated marketing, outreach, and consumer education strategies. The programs included: residential lighting, home energy audits, low-income weatherization, energy-efficient schools, and commercial and industrial. Energizing Indiana was administered by a single independent, third-party entity, which was contracted by all of the utilities. Utilities were able to oversee additional programs.

In March 2014, the Indiana legislature voted to end Energizing Indiana programs, effectively eliminating the state's EERS. Governor Pence neither signed nor vetoed the bill, and it became law in April 2014. Governor Pence voiced his support for energy efficiency, directing legislators and regulators to consider new frameworks for energy efficiency in the future. The 2015 legislative session of the Indiana General Assembly resulted in SEA 412 (Senate Enrolled Act 412), signed into law by the Governor. SEA 412 requires a public utility to submit an integrated resource plan to the IURC. After 2017, the utilities will be required to seek approval of new energy efficiency plans at least once every three years. Indiana allows utilities to recover the cost of these programs through rates, although certain industrial customers can opt out based on their electric usage. SEA 412 also provides that EM&V procedures be required to be included in an electricity supplier's energy efficiency plan. Additionally SEA 412 provides that the IURC may not require a third-party administrator to implement an electricity supplier's energy efficiency program or plan.

The IURC is in the process of a rulemaking to update and revise the commission's administrative rules for integrated resource planning and DSM cost recovery. Information on this rulemaking can be found here.

Indiana Administrative Code provides guidelines for demand-side recovery electric utilities, as well as lost-revenue recovery and demand-side management incentives.

Last Updated: June 2017

Summary: Targets vary by utility, with average incremental electricity savings of 1.2% per year and natural gas savings between 0.7% and 1.2% of retail sales for the 2014-2018 planning period.

Senate File 2386, passed in 2008, requires utilities that are not rate regulated (i.e., municipal utilities and rural cooperatives) are to set energy efficiency savings goals, but their plans are not reviewed or approved by the IUB.  

For the 2014-2018 planning period, both IPL and MidAmerican set goals of about 1.2% incremental savings per year over this five year period. (See Docket No. EEP-2012-0001 and EEP-2012-0002, respectively) Iowa's natural gas utilities also set annual energy efficiency savings targets for the period between 2014 and 2018. These goals vary by utility, set at about 1.2% per year for MidAmerican (Docket No. EEP-2012-0002), 0.9% per year for IPL (Docket No. EEP-2012-0001), and 0.7% per year for Black Hills (Docket No. EEP-2013-0001).

Last Updated: May 2017

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2015

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: June 2016

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: September 2016

Summary: Electric and natural gas savings of 20% by 2020, with annual savings targets of ~1.6% for electric and 0.2% for natural gas.

The Maine Public Utilities Commission (MPUC) approved the first and second Triennial Plan of Efficiency Maine, which develops, plans, coordinates, and implements energy efficiency programs in the state. In the second plan, Efficiency Maine set a path toward annual energy savings goals in FY2014 of around 1%, ramping up to 1.9% in FY2016. In its third Triennial Plan, Efficiency Maine projects the addition of 2.2% in savings annually.  The plan also includes savings targets for other fuels, including natural gas.

The 10- and 20-year targets established by statute are far-reaching and were incorporated into the strategy and budgets of the Triennial Plan.  Targets were revised in 2013, when Maine legislators overrode the governor’s veto to pass LD 1559. Targets include capturing all cost-effective energy efficiency (both electricity and natural gas); reducing electricity and natural gas consumption 20 percent by 2020; reducing oil heating use 20 percent in the same timeframe; and weatherization of all homes for which homeowners are willing to share the costs of cost-effective weatherization to a minimum standard.

Last Updated: June 2016

Summary: Beginning in 2016 and through 2023, utilities must ramp up programs by 0.2% per year, leveling out at 2% incremental savings per year as a percent of 2016 weather-normalized gross retail sales and electricity losses.

Although Maryland's utilities ran energy efficiency and demand response programs in the 1980s and early 1990s, most of these efforts were discontinued when the state removed regulations during utility restructuring in the late 1990s. This changed when the legislature enacted the EmPOWER Maryland Energy Efficiency Act of 2008, creating an EERS that set a statewide goal of reducing per capita electricity use by 15% by 2015 (Order No. 82344). On a per capita basis, the Maryland electric utilities and cooperatives as a whole met the 10 percent reduction goal for energy use, but did not meet the 15 percent demand reduction goal, with 11 percent and 8 percent achieved respectively.

Since then, electric utilities have significantly expanded their energy efficiency program portfolios. The PSC issued new EmPOWER targets with Order 87082 in July 2015. The order requires utilities to ultimately achieve savings of 2 percent per year by ramping up incremental savings at a rate of 0.2 percent per year beginning in 2016.

In 2017, the legislature passed SB 184 which codified the 2% energy savings goal into law through 2023. Utilities must file their energy efficiency program plans with the Public Service Commission, which then must approve the plans. These plans are filed every three years for three year program cycles. The PSC has allowed some utilities to decouple their profits from their sales. No performance incentives have been approved for the utilities; however, cost recovery that is amortized over multiple years may include a return.

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 2017

Summary: Electric: Yearly incremental savings targets began at 1.4% in 2010, ramping up to 2.94% by 2016. Natural Gas: Targets began at 0.63% in 2010, ramping up to 1.24% by 2016.

 The Green Communities Act requires that electric and gas utilities procure all cost-effective energy efficiency before more expense supply resources, requiring a three year planning cycle. In January 2016, the DPU approved the third 3-year (2016-2018) electric and gas energy efficiency plans under the Green Communities Act, continuing the state’s progress toward the most ambitious energy savings targets in the country. The first electric efficiency procurement plancalled for incremental savings 1.0% in 2009, 1.4% in 2010, 2.0% in 2011, and 2.4% in 2012.  The state's third three-year plan calls for savings to increase to 2.95% of annual sales in 2018. The energy efficiency investments in 2016-2018 are expected to save 4,118 annual GWh of electricity by 2018. The statewide totals are comprised of individual program administrator savings.

The state's natural gas plan will save 85.8 MMTherms over the 2016 to 2018 plan period (equivalent to 1.24% of sales), and 29.2 MMTherms in the year 2018 (1.25%).

Overall, the fully funded 2016-2018 electric and natural gas efficiency procurement plans will yield net consumer benefits of nearly $7.9 billion. The electric savings proposed in the current three-year plan represent a 5% increase relative to what was achieved in the previous three-year plan; proposed gas savings represent a 8% increase.

Last Updated: June 2016

Summary: Electric: 1% incremental savings through 2021.  Natural Gas: 0.75% incremental savings through 2021.

Michigan adopted an EERS in October 2008, when the Clean, Renewable, and Efficient Energy Act was signed into law, requiring all electric and natural gas utilities to provide “energy optimization (EO) programs.” PA 295 required electric utilities to achieve 0.3% savings in 2009; 0.5% in 2010; 0.75% in 2011; and 1.0% in each year from 2012 to 2015. Targets continued each year thereafter at 1% incremental electricity savings relative to the prior year’s total retail electricity sales. Targets for natural gas utilities started in 2009 at  0.1% savings as a percent of annual retail natural gas sales, eventually ramping up to 0.75% in each year from 2012 to 2015. PA 342, passed in December 2016, maintains the 1.0% (electric) and 0.75% (gas) targets through 2021. An earlier 2% spending cap for electric and natural gas utilities was also removed by the legislation.

Each MWh of savings achieved by a utility in a given year qualifies for one energy optimization credit.  Excess credits can be "banked", i.e., can be used to meet up to one-third of the required energy savings in the year following the year in which they were achieved.  Excess credits cannot be banked if a utility has opted to receive incentive payments for exceeding its savings targets in a particular year.

Regulated investor-owned utilities are responsible for 88.9 percent of the statewide electric savings targets; municipal utilities represent 7.8 percent of savings; and electric cooperatives, 3.4 percent. Most efficiency programs are administered by the utilities, although some have opted to fund a state-selected program administrator, Efficiency United, through an alternative compliance payment mechanism specified in Act 295. Although Efficiency United program services are not subject to the statutory savings targets, equivalent contractual targets were imposed by the Commission. Large electric customers, as determined by their peak use, may administer their own programs.

Last Updated: July 2017

Summary: Electric and Natural Gas: 1.5% incremental savings each year beginning in 2010, adjustable to a minimum of 1% savings.

Minnesota investor-owned electric and gas utilities are subject to the energy savings requirements of the Next Generation Energy Act (NGEA), passed by the Minnesota Legislature in 2007 (Minnesota Statutes 2008 § 216B.241). Among its provisions, the Act set incremental energy-saving goals for utilities of 1.5% of retail sales annually, commencing with the first triennial plan period that began January 1, 2010. Of the 1.5%, the first 1% must be met with direct energy efficiency energy savings, or conservation improvements.  This may include savings from efficiency measures installed at a utility’s own facilities. The NGEA also allows savings to be achieved indirectly through energy codes and appliance standards. Up to 0.5% may be met by efficiency enhancements to each utility’s generation, transmission, and distribution infrastructure.

All electric and natural gas utilities, including municipal utilities and co-operatives, must set energy efficiency spending goals based on a percentage of revenue. Prior to the Next Generation Energy Act going into effect fully in 2010, Minnesota utilities were required to spend a percentage of gross operating revenue (0.5% gas, 1.5% electric, 2% for Xcel Energy's electric utility) on energy efficiency programs rather than to achieve a set amount of energy savings.  In practice, however, these minimum spending requirements are often irrelevant, as utilities must spend more than these minimum percentages to achieve the 1.5% EERS.

The NGEA allows a utility to request a lower target (based on historical experience, an energy conservation potential study, and other factors), but for investor-owned utilities that target can be no lower than 1% per year. Lower savings can also be justified if the Commissioner of Commerce determines that additional savings are not cost-effective to ratepayers, the utility, participants, and society. In 2009, the state legislature passed interim legislation to reduce the mandated level of savings during the first three years for natural gas utilities, establishing an interim average annual savings goal of 0.75 percent over 2010-2012 for utilities that submit a “ramp up” plan that averages annual savings of 1% in subsequent years (Minnesota Session Laws 2009, Ch. 110, Sec. 32).

In the most recent triennial planning period (2013-2015), Xcel Energy electric savings goals were set at 1.38% annually (see Docket No. E,G002/CIP-12-447). 

Last Updated: July 2017

There is currently no EERS in place, however new MPSC rules issued in July 2013 establish a comprehensive phase which will set long-term energy efficiency targets.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2017

Missouri has only voluntary goals for electric utilities to help the Commission review progress toward an expectation that the utility can achieve a goal of all cost effective demand-side savings including: a) incremental annual energy and demand savings in 4 CSR 240-20.094(2), and b) cumulative annual energy and demand savings in 4 CSR 240-20.094(2)(B), e.g.,  0.3% incremental annual energy savings in 2012, ramping up annually to 0.9% in 2015 and 1.7% in 2019 for cumulative annual energy savings of 9.9% by 2020.  The voluntary goals are not mandatory and no penalty or adverse consequence will accrue to a utility that is unable to achieve the annual energy and demand savings goals. 

Last Updated: July 2017

There is currently no EERS in place. 

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2017

There is currently no EERS in place. Each of the state's major public power utilities have self-imposed energy efficiency targets including Omaha Public Power District, Nebraska Public Power District, and Lincoln Electric System.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2017

Summary: 25% renewable energy by 2025—energy efficiency may currently meet 20% of the standard in any given year, but phases out of the RPS over time.

In 1997, Nevada established a renewable portfolio standard (RPS) as part of its restructuring legislation. Assembly Bill (AB) 3 of 2005 revised the RPS, increasing the portfolio requirement to 20% by 2015 and allowing utilities to use energy efficiency to help meet the requirements. Amendments in Senate Bill 358 of 2009 raised the portfolio requirement to 25% by 2025. Energy efficiency measures qualify if they are subsidized by the electric utility, reduce demand (as opposed to shifting peak demand to off-peak hours), and are implemented or sited at a retail customer’s location after January 1, 2005. Energy efficiency savings can meet up to a quarter of the total standard in any given year. AB1 of 2007 expanded the definition of efficiency resources to include district heating systems powered by geothermal hot water.

The Public Utilities Commission of Nevada (PUCN) established a program to allow energy providers to buy and sell portfolio energy credits (PECs) in order to meet energy portfolio requirements. The number of kWh saved by energy efficiency measures is multiplied by 1.05 to determine the number of PECs. For electricity saved during peak periods as a result of efficiency measures, the credit multiplier is increased to 2.0. PECs are valid for a period of four years. 

In 2013, the legislature voted to phase out this energy efficiency allowance in order to effectively increase the requirement for new renewable energy.  

In June 2017, SB 150 was signed into law directing the PUCN to establish annual energy savings goals for NV Energy and to establish performance-based incentives which an electric utility can recover if it exceeds those goals.

Nevada has no natural gas EERS.

Last Updated: July 2017

Summary: Incremental electric savings of 0.8% in 2018, ramping up to 1.0% in 2019, and 1.3% in 2020. Natural gas savings of 0.7% in 2018, 0.75% in 2019, and 0.8% in 2020.

In August 2016, the New Hampshire Public Utilities Commission approved an EERS to help the state achieve the objectives set out in its 10-year State Energy Strategy. Commission-approved energy efficency programs will be implemented in accordance with this framework beginning January 1, 2018. The EERS has an overarching goal of achieving all cost-effective energy efficiency, which it hopes to achieve incrementally through a framework of three-year planning periods. During the first three year period, the cumulative goal for electric savings will be 3.1 percent of delivered 2014 kWh sales, with interim annual savings goals of 0.80 percent, 1.0 percent, and 1.3 percent. The cumulative goal for gas savings will be 2.25 percent of delivered MMBtu 2014 sales, with interim annual savings goals of 0.70 percent, 0.75 percent, and 0.80 percent. Funding for the EERS will come from increases to the system benefits charge (SBC) and the local distribution adjustment charge (LDAC), both current components of electric and gas bills, respectively.

The New Hampshire Senate passed HB 1129 in 2014, calling for the development of long term goals that take into account and complement any goals developed by the New Hampshire Public Utilities Commission. In February 2015, NHPUC staff issued a straw proposal for an EERS for the period 2015-2025.  For electricity savings, staff assumed a gradual increase in savings from 2015 to 2025 and determined total savings of about 9.76% of 2012 kWh electrical usage were attainable over the period.

In December 2015, testimony was filed proposing frameworks and general terms for the implementation of an EERS in New Hampshire. A Settlement Agreement, including the establishment of an EERS, was approved by the Commission in Order No. 25,932 in August 2016. Utilities are expected to provide EERS filings for 2018-2020 in September 2017.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2017

New Jersey set energy savings goals of 20% savings by 2020 relative to predicted consumption in 2020 in its Energy Master Plan of 2008. However, these goals are advisory and lack consequence if they are missed. 

The BPU sets annual energy savings targets through its Comprehensive Resource Analysis (CRA) proceeding, but has yet to pursue a binding EERS that would require each electricity supplier/provider to meet long-term energy efficiency goals. Although they are required to submit individual energy master plans pursuant to the New Jersey Energy Master Plan, these have been delayed indefinitely

Last Updated: August 2016

Summary: 5% reduction from 2005 total retail electricity sales by 2014, and an 8% reduction by 2020.

In 2008, New Mexico legislature passed HB 305, which amended the Efficient Use of Energy Act (first passed in 2005) and established energy efficiency targets for the state. The 2008 law required investor-owned utilities to achieve a 5% reduction from 2005 total retail electricity sales by 2014 and a 10% reduction by 2020 (see NM Stat. § 62-17-1 et seq.).

The state’s targets were amended in 2013 with the passage of HB 267. The law established a fixed tariff rider for funding energy efficiency and load management programs. The bill was a compromise among energy efficiency advocates, New Mexico’s utilities, and representatives of the Public Regulation Commission, and preserved the targets but reduced the energy savings requirement in 2020 for electric utilities from 10% to 8% of sales.

Though targets have been adjusted downward, steady funding makes it likely that long-term targets will be surpassed. If a utility determines it cannot achieve the energy saving requirements, it must report to the Commission, explain the shortfall, and propose alternative requirements based on acquiring cost-effective and achievable energy efficiency and load management resources. If the commission determines that the requirements exceed the achievable amount of energy efficiency and load management available, it may establish lower requirements for the utility (see NMAC 17.7.2).

Distribution cooperative utilities, which are not fully regulated by the PRC, must annually consider self-imposed electricity reduction targets and design demand side management programs to enable them to meet those targets. Each cooperative utility must submit a report to the PRC annually describing their demand side management efforts from the previous year.

New Mexico has no natural gas EERS.

Last Updated: July 2017

Summary: Electric: Under current Reforming the Energy Vision (REV) proceedings, utilities have filed efficiency transition implementation plans (ETIPS) with incremental targets varying from 0.4% to 0.9% for the period 2016–2018. NYSERDA's Clean Energy Fund (CEF) Framework outlines a minimum 10-year energy efficiency goal of 10.6 million MWh measured in cumulative first year savings (approximately 0.7% incremental annual savings). Some degree of overlap of program savings is anticipated between utility targets and NYSERDA CEF goals. Natural Gas: Utilities have filed proposals for varying incremental targets averaging incremental savings of 0.28% for the period 2016–2018.

In 2008, the New York State Public Service Commission established the New York Energy Efficiency Portfolio Standard (EEPS) proceeding. As part of a statewide program to reduce electricity usage by 15% of the forecast levels by the year 2015, with comparable results in natural gas conservation, the Commission established interim targets and funding through the year 2011. The Commission required utilities to file energy efficiency programs, and NYSERDA, as well as independent parties, were invited to submit energy efficiency program proposals for Commission approval.

Through a series of Orders, the Commission authorized the utilities (the six electric investor owned utilities previously authorized in the SBC proceeding, plus Corning National Gas Corporation, St, Lawrence Gas, Company, Inc., KeySpan Energy Delivery New York and KeySpan Energy Delivery Long Island) as well as NYSERDA to conduct EEPS programs. Since June 2008, the Commission approved over 100 electric and gas energy efficiency programs, along with rules to guide implementation and measure results.

In 2011, the Commission reauthorized a majority of the EEPS programs for the four-year period ending December 31, 2015, with revised targets and budgets where appropriate - NYSERDA was authorized to operate a limited number of programs through December 31, 2018. Additionally, three gas efficiency programs run by National Fuel Gas Corporation pursuant to its rate cases were consolidated into the EEPS program. The percentage of funding allocated to low-income programs was also increased. The order also suspended a portion of the program that provides utilities with financial incentives for achieving efficiency targets. These incentives were reinstated in March 2012 for the period 2012 – 2015.

In 2014, New York initiated a proceeding, Case 14-M-0101, "Reforming the Energy Vision," to further discuss the state's energy efficiency resource standard, along with other major elements of the state's utility regulatory structure. The PSC's Phase I REV Decision establishes minimum savings goals of only 0.37% for utilities in 2016, and requires utilities to file energy efficiency plans in 2016-2018 but does not specify specific energy savings goals.

On February 26, 2015, the Commission issued an order in Case 14-M-0101 that, among other things, established a new framework for post-2015 electric energy efficiency programs.  A similar framework is expected to be established for gas energy efficiency programs - a Notice of Proposed Rulemaking was published in the NYS Register on April 15, 2015. A new case, 15-M-0252, was established for the utilities post-2015 energy efficiency programs.

In January 2016, the PSC authorized NYSERDA's Clean Energy Fund (CEF) framework, which outlines a minimum 10-year energy efficiency goal of 10.6 million MWh measured in cumulative first year savings. In May 2016, the PSC issued a REV II Track Order prescribing that the Clean Energy Advisory Council also propose utility targets supplemental to utilities' Efficiency Transition Implementation Plans (ETIPS) by October 2016. Some degree of overlap of program savings is anticipated between utility targets and NYSERDA CEF goals.

Last Updated: September 2016

Summary: Renewable Energy and Energy Efficiency Portfolio Standard (REPS): 12.5% by 2021 and thereafter. Energy efficiency is capped at 25% of the 2012-2018 targets and at 40% of the 2021 target.

North Carolina Senate Bill 3 was finalized in 2008, introducing the state’s combined Renewable Energy and Energy Efficiency Portfolio Standard (REPS).  Under the REPS, public electric utilities in the state must obtain renewable energy power and energy efficiency savings of 3% of prior-year electricity sales in 2012, 6% in 2015, 10% in 2018, and 12.5% in 2021 and thereafter. For IOUs, energy efficiency is capped at 25% of the 2012-2018 targets and at 40% of the 2021 target. Co-operative and municipal utilities may satisfy their all of their REPS requirement of 10% savings by 2018 with energy efficiency, excluding small set-asides for solar and other resources. Utilities demonstrate compliance by procuring renewable energy credits (RECs) earned after January 1, 2008. Under North Carolina Utility Commission rules, an REC is equivalent to 1 MWh of electricity generated by a renewable energy facility or avoided through an efficiency measure.

Since the REPS goals are cumulative, the 12.5% target in 2021 will require 5% of its sales in 2021 to be met with energy efficiency over the entire 13-year period in which energy efficiency savings may be counted. Averaged over three years, each target period until 2018 requires yearly incremental savings of 0.25%. The final period from 2018 to 2020 will allow yearly incremental energy savings of 0.83%. Utilities plan to employ more than the full quarter allowable over the next ten years. Industrial customers may opt-out of utility energy efficiency programs and not bear the costs of new programs if they implement their own programs. 

Each electric power supplier must file a REPS compliance plan for Commission review as part of its Integrated Resource Planning (IRP) filing on or before September 1 of each year.  A utility’s IRP filing must include a comprehensive analysis of all resource options considered by the utility, including demand-side management and energy efficiency, which must result in “the least cost mix of generation and demand reduction measures achievable….”(N.C. Gen. Stat. §62-2(3a)). According to Commission Rule R8-60, IRP filings must include a 15-year forecast of demand-side resources, among other requirements for the assessment and characterization of the demand-side resource.

North Carolina has no natural gas EERS.

Last Updated: July 2017

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2017

Summary: Beginning in 2009, incremental savings of 0.3% per year ramping up to 1% in 2014. A “freeze” in 2015–2016 allows utilities who have achieved 4.2% cumulative savings to reduce or eliminate program offerings. 

In 2014, Ohio froze its energy efficiency resource standard. Prior to that, the EERS had encouraged significant levels of savings within the state. Future targets remain uncertain.

Senate Bill 221, signed into law May 1, 2008, included both an Energy Efficiency Portfolio Standard (EEPS), and Alternative Energy Portfolio Standard (RPS), among other provisions.  For efficiency, the law required a gradual ramp up to a cumulative 22 percent reduction in electricity use by 2025. Beginning in 2009, the Act required investor owned utilities and retail suppliers to implement energy efficiency programs that achieve energy savings equal to at least three-tenths of one per cent of sales. The baseline for which energy savings were calculated against is the average number of total kilowatt hours sold by electric distribution utilities during the preceding three years.

Ohio’s EEPS also included peak demand reduction targets of 0.75% annually through 2018.

Last Updated: September 2016

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2016

Summary: Electric: Targets are equivalent to 1.4% of electric sales from 2014 through 2019. Natural Gas: 2015-2019 gas targets are equivalent to 0.7% of forecasted sales.

In its first ever long-range strategic plan, the Energy Trust of Oregon laid out energy savings goals between 2010 and 2014 of 256 average megawatts (2,242.6 GWh) of electricity and 22.5 million annual therms of natural gas. These goals include savings from NEEA programs. Electric targets were equivalent to 0.8 percent of 2009 electric sales in 2010, ramping up to 1% in 2013 and 2014. Natural gas targets ramped up from 0.2 percent of 2007 natural gas sales to 0.4 percent in 2014. 

In its second long-range strategic plan, Energy Trust laid out energy savings goals for the years 2015 through 2019 of 240 average megawatts (2,102 GWh) and 24 million annual therms of natural gas. These goals include savings from market transformation programs. Electric targets were set to an estimated 1.4 percent of electric sales forecasted for 2014 through 2019. Natural gas targets are set at approximately 0.7% of forecasted natural gas sales for the same five year time period.

Annual goals for Energy Trust reflect an increment in their Strategic Plan goal. These annual goals are codified by the OPUC and then incorporated into each utilities’ Integrated Resource Plan (IRP), along with a 20-year forecast of achievable, technical energy efficiency potential. In this sense, Energy Trust’s IRP goals represent a minimum resource standard and energy efficiency savings supplied by Energy Trust function as a resource supplied each year to the utilities to meet their IRP goals.

Achievement of Oregon’s goals is contingent upon continued increases in IRP funding. Goals include savings from NEEA programs.

Last Updated: July 2017

In August 2012, the Pennsylvania PUC issued an implementation order for Phase II of the EE&C Program, establishing electricity savings targets for the 3-year period from FY2014-2016. The targets amount to 2.3% cumulative savings over the 3-year period; no incremental annual targets were established.

In June 2015, the PUC issued an implementation order for Phase III of the EE&C Program. Phase III is a five year period running from 2016-2020. Targets vary by utility, but total 5,710,487 MWh over the phase, equivalent to about 0.77% incremental savings per year through 2020.

The Commission has recently approved Phase III of Act 129 (EERS), which is a five year phase running from June 1, 2016 through May 31, 2021.  Phase III requires a cumulative average savings of approximately 3.7% (range of 2.6% to 5.0%) from EE and also includes a DR requirement with average annual savings of 425 MW. (See pages 35 and 57 of the implementation order, Docket #M 2014-2424864, for details on DR and EE, respectively).

Pennsylvania has no natural gas EERS.

Last Updated: July 2017

Summary: Electric: 1.7% in 2012 ramping up to 2.6% by 2017. Natural Gas: ~0.4% of sales in 2011 ramp 1.1%.

The Rhode Island legislature unanimously passed The Comprehensive Energy Conservation, Efficiency and Affordability Act of 2006 in June 2006. This act establishes a Least Cost Procurement mandate—requiring utilities to acquire all cost-effective energy efficiency with input and review from the Energy Efficiency and Resource Management Council (EERMC). Under the Least Cost Procurement mandate, National Grid is required to participate in strategic long-term planning and invest in all energy efficiency that is cost-effective and cheaper than supply on behalf of its customers. 

The act also established requirements for strategic long-term planning and purchasing of least-cost supply and demand resources. Utilities must submit 3-year and annual energy efficiency procurement plans, which offer program details, as well as spending and savings goals. Hearings are held once a year before the Rhode Island Public Utilities Commission to review program plans. Yearly incremental savings goals for electricity during the 2012-2014 period began at 1.7% increasing to 2.5% in 2014 (Docket 4284, 4295). Targets for 2015-2017 range from 2.5% to 2.6% (Docket 4443).

Rhode Island’s EERS policy also includes natural gas targets. Savings goals for the 2012-2014 period ranged from 0.6% in 2012 to 1.0% in 2014 (Docket 4284, 4295). Targets for 2015-2017 range from 1% to 1.1% (Docket 4443).

Last Updated: July 2016

There is currently no EERS in place.  

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2016

There is currently no EERS in place.

Utilities may voluntarily participate in the state's Renewable, Recycled, and Conserved Energy Objective (ARSD 20:10:38). Energy efficiency counts toward this objective.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2017

The Tennessee Valley Authority (TVA) stated in its 2008 Environmental Policy that in order to meet its objective of reducing the rate of carbon emissions, it needed to reduce load growth by at least one-quarter over five years through energy efficiency and demand-side initiatives.

In its 2011 integrated resource plan TVA included savings goals from energy efficiency and demand response in its recommended planning direction.  The goals included reductions in peak demand of 3,600-5,100 MW and energy savings of 11,400-14,400 GWh, to be met by the year 2020. These ranges include savings already achieved through 2010, when the planning process began.  The degree to which these goals are binding in the long term is unclear, and therefore is not considered an EERS. 

Last Updated: July 2016

Summary: 20% Incremental Load Growth in 2011 (equivalent to ~0.10% incremental savings per year); 25% in 2012, 30% in 2013. After 2013, the goal metric is shifting to 0.4% of peak.

In 1999, Texas became the first state to establish an energy efficiency resource standard, requiring electric utilities to offset 10% of load growth through end-use energy efficiency (Texas Senate Bill 7). Demand growth is the average growth of the five previous weather adjusted peak demands for each utility. In 2007, after several years of meeting this goal at low costs, the legislature increased the standard to 15% of load growth by December 31, 2008 and 20% of load growth by December 31, 2009 (Texas House Bill 3693).  The legislation also required utilities to submit energy savings goals. The Public Utility Commission of Texas (PUCT) approved these rules in March 2008.

While the 2007 legislation required utilities to submit GWh savings goals to ensure they did not overly focus on load management, the PUCT determined that utilities could convert their demand savings goals into corresponding energy savings goals. In practice, however, the energy savings (MWh) resulting from Texas utility demand response and energy efficiency programs are about twice the amount of the energy saving goals.

In 2010, the PUCT approved Substantive Rule § 25.181, which increased the goals from 20% of electric demand growth to 25% growth in demand in 2012 and 30% in 2013. The rule also established customer cost caps to limit efficiency expenditures. The cost caps may not affect every utility, but some have already hit the caps, which are inhibiting investment in cost-effective energy efficiency programs.

In the 2011 legislative session, Texas adopted Senate Bill 1125, which amends the EERS policy by requiring utilities to eventually achieve savings of 0.4% of each company’s peak demand. As a result, utilities with rapidly growing load growth will have more predictable and consistent goals than those that were set based on load growth. The Bill also added focus on reducing demand in the winter. The Bill does not remove the cost caps adopted in 2010.

Texas has no natural gas EERS.

Last Updated: July 2017

In 2008, Utah adopted a renewable portfolio standard (RPS) of 20% by 2025 that allows energy savings from DSM measures to qualify towards the standard without any cap. 

Last Updated: July 2017

Summary: Average yearly incremental electricity savings of about 2.3%, 2015-2017

Vermont does not have traditional EERS legislation with a set schedule of energy-savings percentages for each year.  Instead, Vermont law requires EEU budgets to be set at a level that would realize "all reasonably available, cost-effective energy efficiency." Compensation and specific energy-savings levels—not “soft” goals or targets—are then negotiated with EEU contractor Vermont Energy Investment Corporation (VEIC). There is not an explicit penalty for non-performance. However, a portion of the compensation Vermont pays the administrator is contingent on meeting stated goals, subject to a monitoring and verification process. If the administrator does not meet stated goals, the state will withhold compensation, and the administrator potentially will be replaced at the end of the three-year period (DSIRE 2011).

Vermont Public Service approved a 2012-2014 budget for Efficiency Vermont, set to achieve approximately 2% annual savings (VT Public Service Board Docket EEU-2010-06). Electric efficiency quality performance indicators for 2015-2017 include a target for total electricity savings of 321,800 MWh over the three year period for Efficiency Vermont. Burlington Electric also has savings targets in place for this period, bringing statewide incremental electricity savings targets to about 2.1% per year. 

The goal-setting process has changed due to Vermont’s “order of appointment” franchise-like structure. Every 3 years, a “demand resources plan” proceeding will be held. The proceeding will set budgets and goals for the next 20 years, coinciding with the long-range transmission plan to allow for integration of forecasting (EEU Structure Docket 7466).

VEIC and BED have been awarded Orders of Appointment as Energy Efficiency Utilities for a period of 12 years. Every 6 years there is a review as to if this appointment should be extended an additional 6 years.The 2015-2017 budget is set to achieve a 2.25% level of savings increasing to 2.32% by 2017 (EEU-2013-01 2013-2014 Demand Resources Plan Proceeding 7/9/2014).

Vermont Gas Systems has also been designated an EEU with a 12 year Order of Appointment to deliver natural gas energy efficiency services as of April 2015 (see Docket 7676).

Last Updated: July 2016

In March 2007, the Virginia legislature passed a bill amending Virginia’s earlier electric industry restructuring law. The governor approved the bill conditionally, requiring the addition of a section on energy conservation, including a goal of 10% electricity savings by 2022 (calculated relative to 2006 sales). The legislature accepted this condition. Under this provision, the State Corporation Commission (SCC) was directed to conduct a proceeding to consider whether the 10% goal could be met cost-effectively, determine the mix of programs that should be implemented and their cost, and develop a plan for development and implementation of these programs, including who should deploy and administer these programs. The SCC completed a report verifying the energy efficiency goal of 10% by 2022 was achievable. In 2015, Governor McAuliffe announced a revised goal of 10% electricity savings by 2020. However, no regulatory requirements have been put in place for energy efficiency programs, and so energy savings goals are considered voluntary.

Last Updated: July 2016

Summary: Utilities set biennial targets to achieve all cost-effective electricity conservation. Targets average ~1.4%  incremental electricity savings per year.

Washington voters approved ballot initiative 937, the Energy Independence Act, in November 2006 which set new renewable energy resource and conservation requirements for large electric utilities to meet. The law, codified in Chapter 19.285 RCW, had rules adopted for its implementation in 2007 and 2008 (WAC 480-109WAC 194-37).  The energy conservation section requires each qualifying utility (those with more than 25,000 customers in Washington) to “pursue all available conservation that is cost-effective, reliable and feasible.” Seventeen utilities, both publicly owned and investor owned, currently meet the definition of qualifying utility.

The law requires utilities to use methodologies consistent with the Northwest Power and Conservation Council’s (NPCC) to determine their achievable ten-year cost-effective conservation potential, and update that potential assessment every two years. Utilities also must establish a biennial acquisition target beginning in 2010-2011, and update that target every two years. If a utility does not meet its conservation goals, it must pay an administrative fine for each MWh of shortfall, starting at $50 and adjusting annually for inflation beginning in 2007.

Although Washington does not have a natural gas EERS, in 2014 all four investor-owned natural gas utilities committed to funding a 5-year, $18.3 million natural gas market transformation pilot through the Northwest Energy Efficiency Alliance. The three largest initiatives have the potential to produce over 280 million therms of savings per year with an average 20-year levelized cost of $0.28/therm.

Last Updated: July 2017

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2017

Summary:Electric: 0.77% of sales in 2015-2018. Natural Gas: 0.6% of sales in 2015-2018.

2005 Wisconsin Act 141 directs the Public Service Commission to establish energy efficiency and renewable goals and measureable targets at least every four years. The PSCW issued its final order of the Quadrennial Planning Process on November 10, 2010, which adopted electricity and natural gas savings goals for Focus on Energy. The electricity goals, as a percent of peak load and electric sales, amounted to 0.75% in 2011, ramping up to 1.5% in 2014. The PSC also approved natural gas goals of 0.5% in 2011, ramping up to 1% in 2013.

Shortly after the EERS was approved by the Joint Finance Committee of the state legislature, the state limited funding to Focus on Energy to 1.2% of revenues, which resulted in a major reduction in energy efficiency goals. The goals are now approximately 0.75% of sales in 2011, 2012, and 2013 for electricity and 0.5% of sales for natural gas over the same time-frame.

In December 2014, the Statewide Energy Efficiency and Renewables Administration finalized the Focus on Energy contract for the years 2015-2018. The contract included a requirement that Focus on Energy programs achieve cumulative net first-year electricity savings of 2,137,142,988 kWh and natural gas savings of 76,911,727  over the four year period.

Last Updated: July 2017

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here

Last Updated: July 2016