TURNING THE STATES TOWARD EFFICIENCY

Reaching the Tipping Point: Majority of States Have Now Adopted Energy Efficiency Resource Standards
December 21, 2010 (American Council for an Energy Efficient Economy)

"While the prospect of passing a comprehensive national energy policy remains uncertain for the 112th Congress, two states reminded the country last week that bold energy efficiency policies, which will save consumers and businesses millions in wasted energy costs, can win bipartisan support.

"On December 10, Arkansas became the first state in the Southeast to adopt a comprehensive set of policies on utility energy efficiency programs, including an Energy Efficiency Resource Standard (EERS). Four days later in Wisconsin, the Joint Committee on Finance approved recommendations set in an Order given by the Public Service Commission of Wisconsin (PSCW) to increase funding to Focus on Energy, the statewide energy efficiency provider, and set performance goals that will function as an EERS. An EERS requires electricity and natural gas providers to meet annual energy savings goals by providing energy efficiency program services…"

click to enlarge

"Max Neubauer, ACEEE Research Associate and author of an energy efficiency potential study for Arkansas:] “The orders given by the Arkansas Public Service Commission signify a break from the commonly voiced doctrine in the Southeast that any expense on utility bills is a bane of business and economic growth. In fact, it is quite the opposite with regards to energy efficiency. It costs far less to save a kWh than to generate one, so energy efficiency encourages economic growth by creating a robust, sustainable energy market that offers new business opportunities, generates jobs, saves consumers money, and curbs the strain on our environment.”

"The Arkansas targets are moderate, rising from an annual reduction of 0.25% of total electric kilowatt-hour (kWh) sales to 0.75% of total electric kWh sales over the next three years (and slightly less for natural gas sales), but require a high level of verification to ensure that utility companies are fairly rewarded, and that consumers get solid cost benefits."

click to enlarge

"The Wisconsin electricity goals, as a percent of peak load and electric sales, amount to 0.75% in 2011, ramping up to 1.5% in 2014. The PSCW also approved natural gas goals of 0.5% in 2011, ramping up to 1% in 2013.

"Twenty-six states now have an EERS, accounting for 65% of the country’s electricity demand. The policies currently on the books will provide electricity savings equal to 6% of nationwide retail sales by 2020…"