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, but 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: June 2017
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 or collected through a non-bypassable surcharge on electricity bills, depending on the utility.
Arizona Public Service Company (APS), a major investor-owned utility and Arizona’s largest electric utility, operates a variety of residential and non-residential programs, including several successful DSM programs for residential and non-residential customers. 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 APSC, including cooperatives and investor-owned utilities, 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: July 2018
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 also supports energy efficiency programs through funds collected as part of its AB 32 cap and trade program. AB 32's original requirement was for California to reduce its GHG emissions to 1990 levels by 2020, a target it reached four years early. 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 the Air Resources Board (ARB) and other state agencies to implement AB 32. In 2016, SB 32 was passed to further require the state to reduce statewide GHG emissions to 40% below the 1990 level by 2030.
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 allocated 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 reviewed: August 2020
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.
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 the 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 reviewed: July 2019
Connecticut’s electric and natural gas utilities (and municipal electric utilities) are required by Connecticut statutes to provide C&LM programs for all customer sectors. The 2022-2024 Plan was reviewed and approved by DEEP and PURA. The 2022-2024 Plan’s primary goal is to “implement cost-effective energy conservation programs, demand management, and market transformation initiatives.” The continuity of Connecticut’s success in delivering high-quality Residential and C&) energy efficiency and demand management programs is directly attributable to the determined efforts of the state’s utilities, the EEB, DEEP, and a multitude of stakeholders. The 2022-2024 Plan covers years 22, 23, and 24 of electric conservation programs since the electric restructuring Public Act 98-28, An Act Concerning Energy Independence, was passed, and covers years 22, 23, and 24 of natural gas efficiency programs since the passage of Public Act 05-01, An Act Concerning Energy Independence.
The 2022-2024 Plan’s programs and initiatives are designed to reflect market trends, new federal regulations and policies, emerging technologies, and evaluation results of its current programs. These considerations lead Connecticut’s energy efficiency programs toward greater efficacy while driving energy savings, greenhouse gas emissions reductions, and increased economic benefits. The 2022-2024 Plan’s programs and initiatives are designed to deliver 1.6 annual MMBtu savings, or equivalent megawatt-hours, for all fuels combined by 2024.
The 2022-2024 Plan's top three priorities are equity, decarbonization, and energy affordability. During the 2022-2024 term, the utilities will promote sustainable building practices (e.g., Zero Energy Homes, Leadership in Energy and Environmental Design, and Passive House), expand active demand response offerings to support electrification and carbon neutrality (e.g., smart thermostats, air conditioning load control, battery storage, and electric vehicle chargers), increase stocking and sale of efficient equipment at retailers, introduce Census Tract Tool to streamline Residential customer outreach efforts for contractors, and enhance promotion of existing loan products, such as CPACE, and increase financing options to C&I customers to support long-term energy efficiency investments that provide immediate energy savings with little to no upfront capital costs.
Funding: For the 2022-2024 term, the primary funding sources for Connecticut’s energy efficiency programs will be: (1) a six-mill Conservation Adjustment Mechanism (CAM) on customer electric bills and (2) contributions from natural gas customers (on firm rates) through the natural gas CAM. Additional funding sources for the 2022-2024 term will include the Regional Greenhouse Gas Initiative (RGGI), a Northeast carbon trade system and revenues from the Connecticut electric utilities’ participation in the Independent System Operator-New England’s Forward Capacity Market.
Dashboard: The utilities maintain a statewide Energy Efficiency Dashboard to provide customers with monthly-updated data regarding program performance, including metrics for the Companies’ Residential and C&I programs, as well as for residential financing programs.
Last reviewed: May 2022
Delaware has made advances toward strengthening its energy efficiency programs, establishing the nonprofit Delaware Sustainable Energy Utility (SEU) to operate programs to deliver comprehensive end-user efficiency and customer-sited renewable energy services. SEU operates as “Energize Delaware.” Since 2006, Delaware law has required electricity providers to engage in integrated resource planning (IRP). In 2009, Delaware approved an Energy Efficiency Resource Standard (EERS) that set goals for consumption and peak demand for electricity and natural gas utilities. The goals are 15% electricity consumption and peak demand savings and 10% natural gas consumption savings by 2015. However, rules outlining how these goals are to be met are still pending.
In 2014, the state legislature passed SB 150, 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. SB 150 created the Energy Efficiency Advisory Council (EEAC), which established voluntary energy savings targets (electric and gas), similar to the EERS. The incremental energy efficiency targets are incremental annual savings as a percent of forecasted sales.
2016/2017 targets: 0.4% electric, 0.2% natural gas
2018 targets: 0.7% electric, 0.3% natural gas
2019 targets: 1.0% electric, 0.5% natural gas
2020-2022 target: 0.7% electric, 0.5% natural gas
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 reviewed: September 2020
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. In 2011, the District of Columbia awarded a performance-based contract to VEIC to operate the DCSEU under a one-year contract with additional option years. In 2016, the District solicited proposals to operate the DCSEU under a new five-year performance-based contract with an optional five-year extension. In 2017, the contract was awarded to VEIC, which designs and implements the DCSEU’s residential, commercial and institutional, and multifamily energy efficiency programs as well as some renewable energy programs. Under the contract awarded in 2017, the DCSEU’s energy savings goals are cumulative across the five-year contract period rather than on an annual basis. For FY2022-FY2026 DCSEU's annual energy efficiency targets for electricity, natural gas, or fuel oil users are expressed on a total energy consumed basis in British Thermal Units (BTUs) (Source).
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 reviewed: June 2022
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, and did so in 2019. By Order No. PSC-2019-0509-FOF-EG, the Commission declined to set new goals, voting to continue (through 2024) the goals that were approved in Order No. PSC-2014-0696-FOF-EG. In June and August 2020, the Commission approved the DSM Plans that the IOUs submitted in order to achieve the approved goals.
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 reviewed: July 2022
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 tariff that is applied to residential and commercial customer's bills. Georgia Power is the only regulated electric utility in the state. Georgia Power filed its 2022 IRP and DSM Certification in Docket Nos. 44160 and 44161. The utility has 11 certified energy efficiency programs – six residential and five commercial and one residential demand response program. Each customer class is responsible for the program and incentive costs for 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 2022
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: August 2018
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. 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 reviewed: July 2019
Illinois passed legislation (SB 1592) in July 2007 that created a requirement for large-scale utility energy efficiency programs in Illinois. SB 1592 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. In December 2016, SB 2814 raised this cap from 2% of customer rates to 3.5%, eventually increasing to 4% beginning in 2026. Illinois established a natural gas EERS in 2009 with a goal of providing 8.6% cumulative savings by 2020.
SB 2814 also removed energy efficiency programs previously administered by the Department of Commerce and Economic Opportunity and the Illinois Power Agency and placed the programs solely with the Utilities. The legislation also transitioned goals previously structured as first-year savings to goals related to longer-term cumulative persistent annual savings.
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 reviewed: July 2019
Both natural gas and electric utilities in Indiana operate energy efficiency programs. These utilities include Duke Energy Indiana, Indiana Michigan Power Company (I&M), Indianapolis Power and Light (IPL), NIPSCO, and Vectren. While some of these utilities have had programs for over a decade, they have historically 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 Cause 42693) called on all electric utilities to provide a core set of statewide programs. It was implemented starting January 2, 2012. The order in Phase II of the investigation (Cause 42693 S1) required regulated utilities to achieve escalating energy savings targets. The investor-owned utilities contracted with a single, independent, third-party administrator to jointly administer and implement a core set of programs, which was 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.
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 also implemented additional programs outside of the shared Energizing Indiana programs, which were called Core Plus programs.
SB 340 eliminated Energizing Indiana, 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 were not subject to the Phase II order in Cause 42693 S1 and were not part of Energizing Indiana. Combination electric-gas utilities did and continue to offer joint programs. The IURC requires natural gas utilities to complete market potential studies, annual operating plans, annual reports, and EM&V reports for their customer programs. NIPSCO and Vectren currently offer natural gas energy efficiency programs. Citizens Gas & Citizens Gas of Westfield suspended energy efficiency programs in 2016.
Under SEA 412, passed in 2015 and codified at Ind. Code § 8-1-8.5-10 (Section 10), Indiana utilities are required to submit energy efficiency plans for commission review no less often than once every three years. I&M’s current plan (Cause 44841) covers 2017-2019, Vectren (Cause 44927) and IPL (Cause 44945) run from 2018-2020, while Duke (Cause 43955 DSM 3 S1) and NIPSCO (Cause 44634) have plan cycles that end in 2018 with new plans slated to run 2019-2021.
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: October 2018
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. 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 reviewed: July 2022
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 are also 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 (KPSC). 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 being 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 they 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 customer energy efficiency programs in Maine are administered by the Efficiency Maine Trust. 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 electric utility customers—both of consumer-owned and publicly-owned utilities—are eligible to receive services through the statewide electric energy efficiency programs administered by Efficiency Maine (with the exception of large electricity users that take service at the transmission or subtransmission level). All electric 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 amended as part of the Omnibus Energy Act passed in 2013, to extend these programs to each natural gas utility in the state. Historically, the PUC has assessed electric and natural gas utilities to collect funds for energy programs and administrative costs. The funds for natural gas conservation programs are collected through a rate surcharge. In addition, Efficiency Maine manages money from the Regional Greenhouse Gas Initiative (RGGI), the Foward Capacity market, various settlents, and grants, such as those received from the Federal government's American Rescue Plan Act (ARPA).
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 reviewed: May 2022
The EmPower Maryland Energy Efficiency Act of 2008 directed 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 were also required to decrease peak demand by 15% by 2015. These goals were essentially achieved. Beginning in 2016, electric utilities must ramp up programs to increase incremental savings by 0.2 percent, leveling out when savings reach 2% per year. Natural gas goals and limited income goals are currently being planned.
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: June 2018
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 (including active demand management and electrification for greenhouse gas reductions). 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 program administrators have partnered together to sponsor the Mass Save® program. 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.
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.
Last reviewed: August 2020
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. In December 2016, the legislature passed PA 341/PA 342, carrying current 1% electric and 0.75% natural gas targets forward. However, recent IRPs for DTE and Consumers Energy have approved savings targets ramping up to 2% by 2021.
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 Waste Reduction 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.
PA 295 had capped spending for each utility at 0.75% of total sales revenues in 2009, rising to 2.0% in 2012 and each year thereafter. However this cap was removed, effective April 2017, in the PA 341/PA 342 legislation package.
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 reviewed: August 2020
Minnesota's investor-owned utilities and consumer-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.
Minnesota’s long-running Conservation Improvement Program, (CIP) is a utility-administered program with regulatory oversight provided by the Minnesota Department of Commerce (Commerce). Utility CIP portfolios promote energy-efficient technologies and practices by providing rebates, marketing, and technical assistance to utility customers. Energy conservation programs help Minnesota households and businesses lower their energy costs by using electricity and natural gas more efficiently. Commerce reviews and approves utility CIP regulatory filings to ensure that energy savings are calculated accurately, statutory requirements are met, and programs meet cost-effectiveness standards.
CIP began in Minnesota in the 1980s with the intention of motivating utility spending on energy efficiency. The passage of the 2007 Next Generation Energy Act established Minnesota’s Energy Efficiency Resource Standard (EERS), which required utilities, beginning in 2010, to develop CIP plans to achieve energy savings equal to 1.5% of average annual retail sales each year, unless adjusted by the Commissioner to no less than 1.0%.
On May 25, 2021, the Minnesota Energy Conservation and Optimization Act (ECO Act) was signed into law by Governor Tim Walz. Notable highlights of the ECO Act include: providing participating electric and natural gas utilities the opportunity to optimize energy use and delivery through the inclusion of load management and efficient fuel switching programs ; raising the energy savings goals for the state’s electric investor owned utilities (IOUs); more than doubling the low-income spending requirement for all IOUs; providing greater planning flexibility for participating municipal and cooperative utilities (COUs); and including activities to improve energy efficiency for public 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 reviewed: July 2022
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 served as a trial period for the companies' proposed programs.
The Mississippi Public Service Commission issued revised energy efficiency rules in November 2019 (Docket No. 2018-UA-064) that lay out a framework requiring all jurisdictional, rate regulated gas and electric utilities to implement a Demand Side Management ("DSM") Portfolio for customers that is designed to achieve cost-effective energy and/or demand savings. DSM offerings provide opportunities for customers of all types to adopt energy efficiancy and demand savings measures to increase control and provide greater opportunities to reduce their energy consumption. DMS includes energy conservation, energy efficiency, demand response, and distributed energy resources. The rule also lays out criteria for program cost recovery and evaluation, monitoring, and verification (EM&V).
Last Updated: July 2020
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 were implemented by 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 reviewed: July 2019
Customer energy efficiency programs are run through individual utilities 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 run by the Department of Health and Social Services.
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.
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 reviewed: July 2020
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 are also 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 2018
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: July 2018
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 New Hampshire Public Utilities Commission (NH PUC) emphasized its commitment to energy efficiency programs that complement new energy markets and do not hinder their development. On May 31, 2002, the NH PUC 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. In August 2016, Order No. 25,932 in Docket IR 15-137, the NH PUC approved an energy efficiency resource standard (EERS) for 2017-2020 for electric utility and gas utility energy efficiency programs. In February 2022, HB549 established the electric utility and gas utility system benefit charge (SBC) and local distribution adjustment clause (LDAC) rates to be used to establish the energy efficiency budgets starting in 2022.
The NH PUC reviews and authorizes the utilities’ joint program plans and budgets. 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 electric customer rates, and natural gas programs are funded by a Local Distribution Adjustment Clause (LDAC).
Since the 2016 EERS Order, each utility (except for NHEC) proposed an additional system benefit charge component or LDAC component to recover lost base revenues until a revenue decoupling mechanism for distribution rates was approved. All but one of the utilities have been approved for a revenue decoupling mechanism for distribution rates, and no longer collect the lost base revenues separately.
Additional funding for New Hampshire’s electric 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. Electric energy efficiency programs are also funded via ISO-NE Forward Capacity Market (FCM) Revenues.
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 reviewed: July 2022
Prior to 2007, utilities were required to administer and implement energy efficiency programs with oversight from the NJBPU. In 2002, the NJBPU began a re-assessment of this administrative structure, and in 2007 program administration was turned over to the Division of Clean Energy (DCE). DCE meets regularly with New Jersey's Clean Energy Program (NJCEP), the NJ Division of Rate Counsel, and the state's utilities to plan and coordinate programs. The DCE also chairs monthly public meetings with stakeholders to solicit input on programs and budgets.
All utilities provide financial incentives that complement NJCEP or administer energy efficiency programs that do not compete with those offered through NJCEP. For example, several utilities offer incentives for highly efficient hot water heaters, boilers, and furnaces. All utilities offer financing options to customers in their service territory who wish to participate in residential and commercial programs. By offering on-bill repayment options and low- to zero-interest loans to participating customers, these utilities both lessen the cost burden for customers and attract additional participants who may have been otherwise unable to enroll in these programs.
Additionally, several companies offer residential behavioral analysis programs that utilize customer data to provide residents with breakdowns of their energy usage, comparisons to similar homes in the area, and recommendations to optimize their energy use and conserve energy (including enrolling in other energy efficiency programs). Utilities also offer programs focusing on low- to moderate-income customers, small businesses, and hospitals to ensure that all customer segments have the ability to participate in energy efficiency.
Investor-owned utilities are responsible for collecting the Societal Benefit Charge from their customers and then transferring these funds to the State to support the 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 reviewed: June 2022
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). 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. This was later updated in 2019 by HB 291 to call for 5% savings relative to 2020 retail sales between 2021-2025.
Estimated program funding must be no less than three percent and no more than five percent of blling revenues from all customers' for investor-owned electric utilities and shall not exceed 5% 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. Approval for energy efficiency and load management programs proposed by cooperatives are isseud by the governing body of the cooperative rather than the commission. (NMSA 1978, §62-17-11(A).
Each public electric and natural gas utility must file an application every three years. Each public utility must file annual reports each year (17.7.2 NMAC). Public Service Company of New Mexico files on April 15. Southwestern Public Service Company files on May 15. El Paso Electric Company files on July 15. Natural gas utilities must file by July 1 of each year. Distribution cooperatives must file an annual report by May 1.
Last reviewed: June 2022
New York is a leading state on utility-sector energy efficiency programs. New York’s energy efficiency programs are the result of New York Public Service Commission (PSC) cases dating back to 1996. Customers pay a non-bypassable system benefits charge (SBC) on their utility bills, and the SBC is applied to all customer bills whether they receive service from a local utility or from a competitive supplier; in addition, energy efficiency expenditures are eligible for cost recovery through utlity retail rates and funding for energy efficiency programs is allocated from the sale of carbon emission allowances under the Regional Greenhouse Gas Initiative (RGGI). These funds support a comprehensive set of energy efficiency and building electrification programs for residential, multifamily, low-income, and commercial/industrial customers, as well as research and development efforts. Programs are administered both by utilities and through NYSERDA's Clean Energy Fund (which encompasses the Market Development, Innovation and Research, NY-Sun, and NY Green Bank portfolios). In addition to the programs authorized by the Commission, two public power authorities not under the Commission’s jurisdiction, the New York Power Authority and the Long Island Power Authority, also offer energy efficiency programs to their customers.
New York set a statewide 2025 target of 185 TBtu of end-use savings across fuels (see New Efficiency, New York report), including a sub-target for annual electricity savings to reach 3% of investor-owned utility electric sales by 2025 and 1.3% of gas sales in 2025. The PSC established specific incremental annual energy savings targets and budgets for each utility through 2025, more than doubling utility energy efficiency savings targets over the 2019-2025 period relative to historic levels.
The New York State Clean Energy Dashboard is a resource to provide a snapshot of the utilities' and NYSERDA's progress towards meeting the State's clean energy and climate agenda.
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 reviewed: May 2022
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. 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 reviewed: July 2019
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 2017
With passage of SB 221 in 2008, Ohio established the foundation for the full range of customer energy efficiency programs offered by utilities. However, in recent years programs have succumbed to damaging legislative attacks. SB 310 (2014) enacted a 2-year freeze on the state’s EERS (2015-2016). And in 2019, HB 6, justified subsidies for two nuclear power plants in the state by cutting renewable and energy efficiency surcharges on customer bills, in effect ending most all programs. Utilities do have the option of requesting permission from PUCO to voluntarily to continue programs, however, given HB 6 prohibits a cost recovery mechanism for energy efficiency, continuation of programs is unlikely in most cases.
In February 2020, PUCO ruled that energy efficiency programs would wind down beginning September 30, 2020 and will terminate on December 31, 2020, per the statutory requirements of HB 6.
Financing options 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 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: May 2020
Oklahoma utilities offer a growing portfolio of energy efficiency programs. The Oklahoma Corporation Commission (OCC) established rules for electric and natural gas efficiency programs following a series of stakeholder collaborative meetings in 2008 (Cause #200700007) and updated those rules in July 2018. All utilities are required to file a portfolio of programs using a three year program cycle. AEP Public Service Oklahoma (PSO) and Oklahoma Gas & Electric (OGE) received approval for their new program cycles (2019-2021) in 2018. The state’s major gas utilities, Oklahoma Natural Gas and CenterPoint, also received approval of new demand program portfolios for years 2020-2022 in 2019. Per rules, the state’s IOUs may recover lost revenues and earn an incentive for implementing successful energy efficiency programs.
Last reviewed: July 2020
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 energy efficiency programs are required by legislation (SB 1149, HB 3141 2021). 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.
Additionally, Oregon's public purpose charge (1.5% of the total revenues collected by the utilities from customer electric bills) supports renewable energy, energy efficiency in schools, and low income programs in Oregon.
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 reviewed: July 2022
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), UGI North, and UGI South, as well as UGI Electric. All 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.
In 2016, the Commission approved a rate case for UGI Utilities and as part of that settlement approved UGI Utilities plans to implement a natural gas EE&C program for its approximately 390,000 customers. That plan became effective in calendar year 2017.
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 reviewed: July 2019
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 per kilowatt-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.
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 reviewed: July 2019
Along with other states in the Southeast, South Carolina has made progress on utility-sector energy efficiency efforts over the past few years. The levels of energy efficiency program spending and associated energy savings, however, are still below the national average. All of the state's three investor-owned utilities, Duke Energy Carolinas, Duke Energy Progress, and Dominion Energy of South Carolina (formerly South Carolina Gas and Electric), administer energy efficiency (EE) programs. South Carolina's cooperative utilities (20) also administer some energy efficiency programs as does state-owned Santee Cooper (the South Carolina Public Service Authority); neither electric cooperatives or Santee Cooper are regulated by the SCPSC. To encourage utilities to engage in energy efficiency programs, South Carolina allows utilities to recover the costs of administering the programs by either expensing them immediately or amortizing them over time, to recoup up to 3 years' worth of the lost net revenues resulting from EE programs, and to retain a share (which ranges from 9.9 percent to 11.75 percent) of the net savings the EE programs produce through a shared savings mechanism.
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 2020
South Dakota's utilities run limited energy efficiency programs. Several utilities offer commercial and residential rebate programs.
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 2018
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 2018
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). In the 2011 legislative session, Texas adopted Senate Bill 1125, which amended the EERS policy by requiring utilities to eventually achieve savings of 0.4% of each company’s peak demand.
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 2017
Utah has been a southwest leader in utility energy efficiency programs in recent years, however these savings have recently declined due to the selection of other resources in Rocky Mountain Power's integrated resource plan.
RMP (PacifiCorp), administers and provides a portfolio of energy efficiency programs as part of its integrated resource planning. The Utah Public Service Commission (UPSC) reviews and acknowledges these plans and the 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. RMP's utility bill surcharge varies by rate schedule, and the current rates effective January 1, 2021, can be found at this link.
Dominion, 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 Dominion 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. Dominion provides a wide range of energy efficiency programs for residential and business customers.
Dominion's programs can be found at the following link.
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 reviewed: July 2022
Vermont pioneered the model of a statewide "energy efficiency utility" (EEU) after enacting legislation in 1999 authorizing Vermont PUC to collect a volumetric (per kWh) charge on all electric utility customers’ bills to support energy efficiency programs, called the Energy Efficiency Charge (EEC). PUC 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 Vermont PUC 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 began 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 reviewed: June 2020
Virginia adopted the Grid Transformation and Security Act of 2018 (HB 1558/SB 966), which requires regulated utilities to spend $1.3 billion on energy efficiency over the next ten years, more than tripling efficiency budgets.
Virginia’s State Corporation Commission (SCC) issued an order in May 2019 approving a package of 11 new energy efficiency and demand response programs proposed by Dominion Energy Virginia. Set to run through mid-2024, these programs will invest $225 million in customer programs.
HB 2506 (2009) 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.
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 reviewed: April 2020
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 reviewed: July 2019
Case 09-0177 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. Currently Appalachian Power offers seven residential and two C&I programs in 2019. See WV Case 17-0401.
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 reviewed: July 2019
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% 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).
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 reviewed: June 2022
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