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Georgia

 

Utility-Sector Policies

   

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Summary

Georgia’s Integrated Resource Planning law, O.C.G.A. § 46-3A-2, approved in the early 1990s, requires the state’s regulated electric utilities to file integrated resource plans (IRPs) with the Georgia Public Service Commission (GPSC) every three years.  The IRPs must take into account any present and projected reductions in the demand for energy that may result from measures to improve energy efficiency in the industrial, commercial, residential, and energy-producing sectors of the state. 

GPSC Rule 515-3-4 outlines the commission’s role in the review and approval of the companies’ IRPs.  Natural gas utilities are not required to file IRPs or offer energy efficiency programs to their customers.

Georgia Power is the only regulated electric utility in the state.  The company currently offers two energy efficiency programs, one for residential customers and one for residential builders.  Georgia Power administers both programs.

Georgia statute O.C.G.A. § 46-3A-9 allows a utility to recover costs and an additional sum for commission-approved demand-side management programs to encourage development of demand-side and energy efficiency resources. 

According to the Energy Information Administration, Georgia electric utilities spent $4.8 million on energy efficiency in 2007, saving 2,977 MWh.


Customer Energy Efficiency Programs

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.

According to the Energy Information Administration, Georgia electric utilities reported efficiency program savings of 2,977 MWh in 2007, less than 0.01% of total retail sales.

Georgia Power is the only regulated electric utility in the state. Georgia Power filed its 2007 IRP in Docket Nos. 24505-U and 24506-U.  The company offers an energy efficiency program for residential customers, Home Performance with ENERGY STAR®, and a $300 incentive to builders that construct new electric water and electric heat homes that meet ENERGY STAR® standards.  Georgia Power administers both programs.

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.

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Program Funding

Regulated utility energy efficiency and demand-side management programs are funded through a demand-side management rider that is applied to residential customers only. As of April 2008, the residential rider was 0.009068 cents per kWh. According to the Energy Information Administration, Georgia electric utilities spent $4.8 million on energy efficiency in 2007, 0.05% of total spending.

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Energy Efficiency Resource Standard

Not in place.

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Decoupling

A lost revenue adjustment mechanism is authorized under Georgia Code. The Commission shall consider lost revenues, if any, changed risks, and an equitable sharing of benefits between the utility and its retail customers for approved demand side management programs.  O.C.G.A. § 46-3A-9

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Reward Structures for Successful Energy Efficiency Programs

By statute (O.C.G.A. § 46-3A-9), a utility may recover costs and an additional sum for commission-approved demand-side management programs to encourage development of demand-side and energy efficiency resources. For the Power Credit Single Family Program, the only approved program currently in place, Georgia Power earns an additional sum of 15% of the net present value of the net benefits resulting from the program, but only if the program achieves at least 50% of projected participation levels.

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Energy Efficiency as a Resource

Every three years, Georgia utilities must file IRPs with the commission. The plans must detail the utilities' forecast requirements, taking into account present and projected energy demands and any demand reductions that are the result of improved energy efficiency measures in any and all sectors. There are no requirements, however, that place energy efficiency as a first-priority resource.

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Links:

Last Updated 10/19/2009

 

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For more information contact:
Dan York, Utilities Program Senior Research Associate
 
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