Renewable Power & Energy Efficiency: Energy Efficiency Resource Standards (EERS) and Goals Federal Energy Regulatory

Commission Market Oversight www.ferc.gov/oversight

26 States have Energy Efficiency Resource Standards (EERS)

4 have pending regulations 3 have efficiency goals
MN: 1.5% annual savings to 2015 IA: 1.5% annual, 5.4% cumulative savings by 2020 WA: all cost-effective conservation (~10%) by 2025 OR: 1% annual savings by 2013 CA: save 1,500 MW, 7,000 GWh; reduce peak 1,537 MW: 2010-12 NV: 0.6% annual savings (~ 5%) to 2015; EE to 25% of RPS UT: PUC examining 1% annual CO: 11.5% energy savings by 2020 AZ: at least 22% cumulative savings by 2020; peak credits NM: 10% electric savings by 2020 OK: EE up to 25% of renewable goal TX: 25% annual savings in 2012; 30% in 2013 and beyond HI: 30% electricity reduction by 2030
EERS by regulation or law (stand-alone) Energy efficiency in RPS (hybrid) Updates at: http://www.ferc.gov/market-oversight/othr-mkts/renew.asp Abbreviations: aMW average megawatt a measure for efficiency savings; A&RES Alternative & Renewable Energy Standard; DR - demand response; EE - energy efficiency; EERS Energy Efficiency Resource Standard; RPS Renewable Portfolio Standard Sources: American Council for an Energy Efficient Economy (ACEEE), DOE- EERE, State regulatory and legislative sites, State Efficiency Agency reports, trade press Energy efficiency in renewable goal EERS regulations pending

WI: 1.5% electric savings by 2014; 15% peak reductions

IL: 2% energy reduction, 0.1% peak by 2015 MI: 1% annual energy savings IN: 2% electricity savings by 2019 OH: 22% energy savings by 2025; 8% peak by 2018

ME: 1.4% annual energy savings by 2013 VT: 2% annual, 11% cumulative energy reductions by 2011 MA: 2.4% annual electric savings by 2012 NY: reduce electric use 15% by 2015 CT: 1.5% annual utility savings,10% peak RI: cut consumption 10% by 2022 NJ: Energy Master Plan proceeding DE: cut consumption 15%, peak 10% by 2015 PA: cut consumption 3%, peak 4.5% by 2013 MD: reduce electricity use, peak 15% by 2015 VA: reduce electric use 10% by 2022 WV: EE & DR earn credits in A&RES AR: 0.75% electric savings by 2013 NC: EE to meet up to 25% of RPS to 2011 FL: 3.5% energy savings and summer and winter peak reductions by 2019

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Renewable Power & Energy Efficiency: Energy Efficiency Resource Standards (EERS) and Goals Federal Energy Regulatory Commission Market Oversight www.ferc.gov/oversight

Energy Efficiency Resource Standards (EERS)

An Energy Efficiency Resource (or Portfolio) Standard (EERS) aims to reduce or flatten electric and gas load growth using energy efficiency (EE). It requires distribution utilities to achieve annual savings levels. An EERS may specify reductions for energy use (MWh or therms), peak demand (MW), or both. Energy Efficiency uses less fuel to produce the same or greater amount of usable energy from a given energy source. Reductions normally create multi-year effects over an investments useful life. Alternatively, conservation can be temporary reductions in energy use. Of the 26 states with an EERS, 9 were established by law or regulation in 2009 2010: AR, AZ, DE, FL, IA, IN, MA, OR, and WI. 9 states enhanced existing standards: CA, HI, and TX. (which others?)

STATE ENERGY EFFICIENCY ACTIVITIES:

Arkansas established an EERS with modest goals: 0.75% electric savings by 2013 (MMM 2010) Wisconsin became the 25th state with an EERS when its PSC approved targets of 15% of electricity consumption and 15% peak demand savings by 2015. The reduction is based on the prior years sales times a 1% growth rate. (Nov 2010) Texas increased its targets for state IOUs from 20% of projected load growth, based on an average of the prior 5 years, to 25% in 2012 and to 30% in 2013 and beyond. (July 2010) Maine law requires 30% energy savings and 100 MW peak electric reduction by 2020. The PUC approved the triennial plan of Efficiency Maine Trust. (June 2010) Oklahoma enacted a renewable energy goal of 15% by 2015. EE savings are eligible to meet 25% of the target. (May 2010) Oregon became the 24th EERS state effective in January (year?). Energy Trust OR, the non-profit charged with EE program management, set its first long-term savings goal. It targets 256 average MW saved between 2010-14, or 2,243 GWh, at a levelized cost of less than $0.035/kWh. (Dec 2009) Floridas PUC established a 3.5% energy savings target for the states 7 IOUS from 2010 2019. It set peak reduction targets of 1,937 MW in winter and 2,024 MW in summer. (Dec 2009) Three states are developing regulations for an EERS: NJ, RI, and UT. RI utilities provide detailed annual procurement plans and EE targets. Because the state has neither set a long-term goal or non-compliance penalty, its EERS is deemed as pending. Connecticuts DPUC did not approve additional funding necessary for energy efficiency programs to meet the targeted reductions, so it has been moved to a pending status. (when?)

EnergyEfficiencySummarybyState
26StateswithEERS:AR,AZ,CA,CO,DE,FL,HI,IA,IL,IN,MA,ME MD,MI,MN,NC,NM,NY,NV,OH,OR,PA,TX,VT,WA 20StateswithEEaspartofRPSorRPSgoal 4StateswithEERSpendingfinalregsorapproval:CT,NJ,RI,UT 4StateswithEEgoals(notinaformalEERS):AK,OK,VA,WV 17StateshavepeakreductiontargetsinanEERSorefficiencygoal 18StatesestablishedorexpandedanEERSorgoalin20092010 35StateswithanEERS,pendingEERSregs,oranEEgoal

* Energy Efficiency reductions are measured in average megawatts, or aMW. Abbreviations: EE - energy efficiency; EERS Energy Efficiency Resource Standard; PSC / PUC Public Service / Utility Commission; RPS Renewable Portfolio Standard

Updated April 15, 2011

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