Energy Efficiency Resource Standards

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: For 2020-2022, savings targets are 1.20% of 2018 baseline sales for electric utilities, and 0.5% of baseline sales for natural gas utilities.

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 were set at 0.2% in 2011, 0.3% in 2012, and 0.4% in 2013. 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 1.0% in 2019, with a natural gas savings target of 0.5% for 2017-2019.

In 2018 the PSC ordered higher incremental savings targets in Docket No. 13-002-U, Order No. 43. For program years 2020-2022, the utilities are now required to hit savings targets 1.20% of 2018 baseline sales for electric utilities and 0.50% of 20l8 baseline sales for natural gas utilities. 

Last reviewed: April 2022

Summary: Electric: Starting in 2019, savings targets for PSCo are raised from 400 GWh to 500 GWh per year, or roughly 1.7% of sales. Natural Gas: HB 21-1238 (2021) directs the PUC to set savings targets for gas utility DSM plans based upon the maximum cost-effective and achievable level of savings. 

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 did not set a fixed schedule of statewide percentages of energy savings to be achieved by particular years, nor did it require the acquisition of all cost-effective energy efficiency resources. Instead, it set an overall multi-year statewide savings goal for investor-owned electric utilities of at least 5% of the utility's retail sales (and a 5% peak demand reduction) relative to a 2006 baseline to be met by the end of 2018. For investor-owned natural gas utilities, the EERS legislation structured the requirement in two parts. First, the natural gas IOUs were required to 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 are stated in terms of quantity of gas saved per dollar of efficiency program spending.

HB 1227 (June 2017) extended programs to 2028, requiring the commission to set goals of at least 5% peak demand reduction and 5% energy savings by 2028 for demand-side management programs implemented during 2019 through 2028 compared to a 2018 baseline. The statute includes a similar goal for reduction of peak demand of 5% of the retail system peak in 2006. The Commission ruled in Proceeding No. 17A-0462EG that PSCo's goal for annual energy savings for 2019-2023 be 500 GWh, an increase from the goal of 400 GWh that had been in effect.

HB 21-1238, signed in 2021, strengthens natural gas efficiency programs, directing the PUC to set savings targets for gas utility DSM plans based upon the maximum cost-effective and achievable level of savings. In addition SB 21-264 (2021) created new requirements for the state's large gas utilities to develop comprehensive Clean Heat Plans designed to achieve GHG reductions.

In January 2022 a settlement agreement was reached related to Tri-State Generation and Transmission Association's 2020 Electric Resource Plan, setting GHG reduction targets for 2025-27 with a goal to reduce emissions at least 80% by 2030 from a 2005 baseline. Among the provisions of the agreement are new first-ever incremental annual energy efficiency savings targets for the electric co-op, with goals to reduce system load at least 0.35% in 2023, 0.5% by 2024, 0.75% by 2025, and 1% by 2030.

Last reviewed: April 2022

Summary: Delaware does not have a mandatory EERS. However, energy savings targets have been set by the Energy Efficiency Advisory Council (EEAC) and affected energy providers are currently working to meet these goals.

Established by SB 150, House Amendment 2 in 2014, the Delaware Energy Efficiency Advisory Council convened to establish guidance on cost-effective energy efficiency programs. The Delaware Energy Efficiency Advisory Council (EEAC) provides guidance to energy providers in developing energy efficiency, energy conservation, peak demand reduction, and emission-reducing fuel switching programs for all customer classes. The EEAC collaborates with the Public Service Commission (PSC) and Public Advocate (PA) to guide energy providers in establishing 3-year program  portfolios that must be approved by the PSC or other appropriate regulatory body.

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: (2016/2017) E – 0.4% G – 0.2%; (2018) E – 0.7% G – 0.3%; (2019) E – 1.0% G – 0.5%. The EEAC approved the 2020-2022 energy savings goals in May 2020.  The EEAC has set one three-year, cumulative average goal for electric (0.7% of total electric sales) and gas (0.2% total gas sales) energy savings.

Last reviewed: September 2020

Florida does not have an EERS.

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 energy and peak demand savings goals were set for each of the seven "FEECA utilities" in 2014 for 2015 through 2024. 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

In 2019, the Commission adopted the same goals approved by the Commission in 2014. 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 November 2021 FEECA Report. A comprehensive description of the goal-setting process and methodology can be found in Order No. PSC-14-0696-FOF-EU. 

Last reviewed: July 2022

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: August 2018

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 the 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.

Future Energy Jobs Bill (SB 2814) was enacted into law as Public Act 99-0906 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 that 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 in 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 reviewed: July 2019

Summary: For the 2019-2023 planning period, targets vary by utility, with average incremental electricity savings of 0.89% per year and natural gas savings between 0.10% and 0.29% of retail sales.   

For the 2019-2023 planning period IPL set incremental electric savings goals that average 0.77% of retail sales per year during the five-year period (See Docket No. EEP-2018-0003.) and MidAmerican set incremental electric savings goals that average 1% of retail sales.  (See Docket No. EEP-2018-0002.)

Iowa's rate-regulated natural gas utilities also set incremental energy savings goals for 2019-2023. IPL's goal averages 0.17% (See Docket No. EEP-2018-0003), MidAmerican's goal averages 0.26% (See Docket No. EEP-2018-0002), and Black Hills' goal averages 0.12% (See Docket No. EEP-2018-0004 and modification in EEP-2013-0001) of retail sales.

Last reviewed: July 2022

There is currently no EERS in place.

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

Last reviewed: July 2019

Summary: Annual savings targets of ~2.3% for electric and 0.1% for natural gas for 2020-2022.

The Maine Public Utilities Commission (MPUC) approved the fourth Triennial Plan of Efficiency Maine, which develops, plans, coordinates, and implements energy efficiency programs in the state. The fourth Triennial Plan sets annual savings targets for 2020-2022 of 2.3% for electricity and 0.1% for natural gas, along with additional savings targets for other fuels.

The long-term targets established by statute were updated in 2021 to reflect the state's goal of capturing all cost-effective energy efficiency for both electricity and natural gas (vs. percentage-based targets) and to incorporate new goals set forth in the state's climate action plan. The revised targets (beyond capturing all cost-effective energy efficiency) include reducing energy costs, weatherizing 35,000 homes and businesses (including 10,000 low-income households) by 2030, promoting heat pump installations such that at 115,000 households are wholly heated by heat pumps and 130,000 are partially heated by heat pumps by 2030, and achieiving 220,000 electric vehicle registrations in Maine by 2030.

Last reviewed: May 2022

Summary: Enacted in 2021, An Act Creating a Next-Generation Roadmap for Massachusetts Climate Policy, adopted a new statewide 2050 net-zero emissions target, and established specific GHG savings goals for Mass Save efficiency programs. A July 2021 letter issued by the state’s Energy and Environmental Affairs Secretary formalized these goals requiring the reduction of 504,000 metric tons of CO2e emissions for electric utilities and 341,000 metric tons of CO2e from natural gas programs for 2022-24.

The 2008 Green Communities Act requires that electric and gas utilities procure all cost-effective energy efficiency before more expensive supply resources, requiring a three-year planning cycle.

In January 2019, the DPU approved the fourth 3-year (2019-2021) electric and gas energy efficiency plans under the Green Communities Act, setting among the most ambitious electricity savings targets in the country, averaging 2.7% of annual sales. The state's natural gas plan targeted savings of  95.9 MMTherms over the 2019 to 2021 plan period (equivalent to 1.2% of sales).

The 2022–24 Mass Save plan was approved in early 2022 and includes a strengthened emphasis on electrification, equity, and workforce development in response to ambitious new goals established in 2021 climate legislation signed by Governor Baker to achieve net-zero emissions by 2050. The law also realigns efficiency with decarbonization targets, establishing specific GHG savings goals for Mass Save efficiency programs. A July 2021 letter issued by the state’s Energy and Environmental Affairs Secretary formalized these goals requiring the reduction of 504,000 metric tons of CO2e emissions for electric utilities and 341,000 metric tons of CO2e from natural gas programs for 2022-24. The goals include a focus on measures that will continue to yield cumulative savings over the next decade.

Last reviewed: April 2022

Summary: Electric - 1.75% gross incremental annual savings from IOU utility energy efficiency programs. Natural gas – Minimum of 1% incremental annual savings from IOU programs. Savings from fuel-switching improvements and load management can also count towards these goals.

The 2007 Next Generation Energy Act (NGEA) established the state’s first EERS, which had been the primary policy driver for utility-sector energy efficiency, mandating specific energy savings goals of 1.5% of annual retail sales for electricity and natural gas. Municipal and cooperative utilities are also subject to efficiency requirements, though a 2017 law modified the applicability requirements to exempt small utilities under a certain customer threshold. About 13% of electric load and gas sales are also exempt from efficiency programs due to the state’s opt-out provision for large customers.

In 2021, the state enacted the Energy Conservation and Optimization (ECO) Act, that strengthened the state's EERS and expanded the scope of energy-saving measures that can count toward efficiency goals. To start, the new law sets higher utility savings targets, increasing the 1.5% electric savings goal for investor-owned utility programs to 1.75%, though it maintains the lower goal for consumer-owned municipal and cooperative utilities subject to CIP requirements. The legislation also increases the overarching statewide energy savings goal from 1.5% to 2.5% of annual retail sales of electricity and natural gas, which encompasses savings from a wide range of policies in addition to utility programs. These include savings from building energy codes, appliance standards, rate design, and other efforts. Also, and importantly, while the DOC previously had not tracked or regulated progress toward the broader statewide savings goal, the ECO Act now directs the department to provide reasonable estimations of progress in annual reporting.

The law also allows load management measures that reduce a customer’s net annual energy consumption to count toward utility savings goals. These include services that enable customers to shift load to reduce peak demand and lower their energy bills, and measures that enable the utilities to optimize the infrastructure and generation needed to service customers and facilitate the integration of renewable energy.

The ECO Act also opens a critical door for promoting beneficial electrification by allowing fuel-switching incentives under certain conditions. This will give the state and utilities an important pathway for accelerating adoption of high-efficiency electric heat pumps.

Last reviewed: July 2022

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 reviewed: July 2019

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

The Commission approved the implementation of an EERS for 2018-2020 for the state’s gas and electric utilities in EERS Order No. 26-095 on January 2, 2018.  HB549, approved in February 2022, established the systems benefit charge (SBC) rate for electric utilities and the local distribution adjustment clause (LDAC) for gas utilities to be used to establish the budgets for the electric and gas utility energy efficiency programs.  With these budgets, the utilities then establish plans which include energy saving goals.  For the first three-year period (2018-2020) of the EERS, the cumulative goal for electric savings was 3.1% of delivered 2014 kWh sales, with interim annual savings goals of 0.80%, 1.0%, and 1.3%. The cumulative goal for gas savings was 2.25% of delivered MMBtu 2014 sales, with interim annual savings goals of 0.70%, 0.75%, and 0.80%.  

For 2021, the utilities were approved on a preliminary basis to continue the same SBC rate and structure of the energy efficiency programs as 2020.  With Order No. 26,621, in Docket DE 20-092, the NHPUC approved a plan with a savings goal of 1.62% from 2019 delivered electric sales (within annual savings of 0.84% and 0.78%) and 1.49% from 2019 delivered natural gas sales (within annual savings of 0.75%).

Last reviewed: July 2022

Summary: 5% reduction from 2005 total retail electricity sales by 2014, and an 8% reduction by 2020. HB 291 calls for a further 5% reduction from 2020 total retail electricity sales for programs implemented from years 2021 to 2025

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.

In early 2019, the New Mexico legislature passed HB 291, requires efficiency programs by public utilities to achieve savings no less than 5% of 2020 total retail kWh sales from programs implemented in years 2021 through 2025. Also, no later than June 30, 2025, the commission shall adopt, through HB 291 rulemaking, energy savings targets for electric utilities for years 2026 through 2030 based on cost-effective and achievable energy savings and provide utility incentives based on savings achieved.

Distribution cooperative utilities, which are not fully regulated by the PRC, must periodically examine the potential to assist their customers in reducing energy consumption or peak electricity demand in a cost-effective manner. Each cooperative utility must submit, concurrently with its annual report, a report that describes all of the cooperative's programs or measures that promote energy efficiency, conservation, or load management. 

New Mexico has no natural gas EERS.

Last reviewed: June 2022

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 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 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 requires 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 reviewed: July 2019

HB 6 (2019) effectively terminated the state’s previously enacted EERS, which had been in place since 2008. Specifically, HB 6 lowered the state’s efficiency standard from 22% to 17.5% cumulative energy savings―a goal utilities anticipate surpassing in 2020―and allows utilities to count their savings collectively. Given the bill prohibits PUCO from approving a cost recovery mechanism after the 17.5% target is reached, programs are scheduled to be discontinued at the close of 2020.

Before it's dismantling under HB 6, Ohio’s previous EERS had been enacted under Senate Bill 221 in 2008 and 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% 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 0.3% of sales, ramping up to 1% in 2014, and 2% in 2021. 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: May 2020

Summary: Electric- Incremental targets average ~1.3% (gross) of sales annually for the period 2020–2021. Natural gas: ~0.5% of sales annually for 2020–2021.

SB 1547 (2016) directs electric utilities to plan for and pursue all cost-effective energy efficiency. ETO's 2021 Action Plan can be found here.

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. Goals include savings from NEEA programs.

Last reviewed: June 2020

Summary: Electric: 1.7% in 2012 ramping up to 2.6% by 2017. Current 2018-2020 targets average 2.5% of retail sales. Natural Gas: ~0.4% of sales in 2011 ramping up to 1.1% in 2017. Current 2018-2020 targets average 0.97% of retail sales.

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 ranged from 2.5% to 2.6%; 2.5% for 2018-2021 (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 ranged from 1% to 1.1%; ~0.97% for 2018-2020 (Docket 4443).

Last reviewed: July 2019

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 2018

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

Summary: Electric - Annual incremental savings totaling 357,400 MWh over 2018-2020, or approximately 2.4% of annual sales. Natural gas - Three-year annual incremental savings of 192,599 Mcf spanning 2018-2020, or 0.5% of sales.

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 determined by the PUC every three years in a Demand Resource Plan proceeding. There is not an explicit penalty for non-performance. However, a portion of the compensation Vermont pays the Vermont Energy Investment Corporation (VEIC) parent company that oversees Efficiency Vermont as the program 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).

The goal-setting process has changed due to Vermont’s “order of appointment” franchise-like structure. Every three 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).

Every 6 years there is a performance review for the three EEUs to determine if each appointment should be extended for an additional 6 years.

In addition to the EEU Structure the state’s 2015 Renewable Energy Standard (Act 56) required DUs to addresses building electrification as well as fossil fuel use reduction and is comprised of three components or tiers. While Tier I and II of the RPS address renewable energy requirements, Tier III requires distribution utilities (DUs) to reduce customers’ fossil fuel use through either electrification, efficiency, fuel switching, or storage. This requirement is 2% of a DU’s annual sales starting in 2017 and increasing by 0.67% annually, reaching 12% in 2032.  This program works in conjunction with the traditional EEU programs to deliver benefits to Vermont’s ratepayers. This program operated under Vermont’s administrative rule 4.400.

June 2020

Summary: Utilities set biennial targets to achieve all cost-effective electricity conservation. Electric: Targets average ~0.9% (gross) incremental electricity savings per year. Annual conservation targets are available on the Washington UTC site. Natural gas: HB 1257 (2019) establishes an all cost-effective EERS for natural gas. Initial conservation targets must take effect by 2022.

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 480-109, WAC 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.

HB 1257 (2019) establishes a natural gas conservation standard requiring each gas company to acquire all conservation measures that are available and cost-effective. Each company must establish an acquisition target every two years, with initial targets taking effect by 2022.

Last reviewed: August 2021

Summary: Electric: ~0.5-0.6% of sales in 2019-2022. Natural Gas: ~0.4% of sales in 2019-2022. Minimum net savings goal as a percent of sales. 

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 Commission in May 2018 set four-year savings goals for the 2019-2022 period, which were guided by the findings of Focus' 2017 potential study regarding total achievable potential available at Focus' $100 million annual funding level. All goals are now set in lifecycle terms, rather than the annual therms the Commission previously used. The Commission revised the 2019-2022 savings goals in October 2021. The electric net life cycle savings target is 25,432 GWh for 2019-2022 or 1,695 GWh first-year savings across 2019- 2022, translating to roughly ~0.6% of sales per year on a net basis (0.8% of sales on a gross basis). The net life cycle natural gas savings goal is 1,253 MMTherms for measures implemented in 2019-2022, or 84 MMTherms of first-year savings, equating to between 0.4-0.5% savings as a percent of sales on a net basis (~0.6% of sales on a gross basis).

The Commission has established a quadrennial lifecycle savings goal in MMBtu. Minimum goals are set as 90% of fuel-specific goals. Once the Program Administrator achieves 90% of the fuel-specific goal, it can achieve the remainder of the MMBtu goal with either fuel.

Last reviewed: June 2022