Regulatory support for energy efficiency program continues to expand, according to a new report by IEE. Through such regulatory frameworks, the electric power industry can provide integrated programs that help customers manage their energy use, more fully deploy demand response resources and serve as a point of contact to support customer energy needs.
"Supportive regulatory frameworks are the key to expanding the electric power industry’s already large commitment to electric efficiency even further," said Lisa Wood, IEE executive director.
Spending and budgets for electric utility company energy efficiency programs continue to grow, due in large part to the evolution of state policies that allow utilities to pursue efficiency as a sustainable business.
In fact, utility company energy efficiency budgets in 2012 totaled $6.9 billion — a 27 percent increase above 2010 levels. By 2025, IEE predicts that energy efficiency budgets will exceed $14 billion.
The report finds that all states with ratepayer-funded energy efficiency programs have direct cost recovery of program expenditures. Since its last update in July 2012, IEE found that 31 states have some type of fixed-cost recovery mechanism to align utility fixed costs with investments in energy efficiency programs, up from 27 states in 2012. Regarding performance incentives, 28 states currently have them in place, up from 23 states in 2012.