Tennessee

Summary The Tennessee Valley Authority (TVA), the largest publicly owned electric utility in the country, is the primary electricity provider in Tennessee. As a publicly owned utility, TVA is governed by a Board of Directors. Historically, TVA has provided few energy efficiency programs and services to its customers. While past energy efficiency efforts have been modest, efforts are underway in Tennessee that could lead to much greater funding for programs, increasing energy savings. In its 2007 Strategic Plan, TVA stated its commitment to be a leader in energy efficiency. Since the Plan’s release, TVA has drafted an energy efficiency and demand response plan and an environmental policy. TVA’s most recent goals, approved by the Board in May 2008, are to reduce peak demand by 4% by 2012. As part of the ramp-up process, TVA released a suite of pilot energy efficiency programs, including in-home energy auditing programs and prescriptive incentive programs for HVAC technologies. According to the Energy Information Administration, Tennessee utilities spent $10.0 million on energy efficiency in 2007, saving 63,547 MWh.

Tennessee Valley Authority (TVA), the largest publicly owned electric utility in the country, is the primary electricity provider in Tennessee. TVA serves about 8.7 million customers. As a publicly owned utility, TVA is governed by a Board of Directors, as are other federal power authorities. So far, TVA has provided few energy efficiency programs and services to its customers.

While past energy efficiency program efforts have been modest, efforts are underway in Tennessee that could lead to much greater funding for programs, increasing energy savings.

In 2006, TVA's Directors established a task force that examined energy conservation needs and made recommendations for an energy conservation plan for low-income households. In June 2007, the Tennessee legislature approved a joint resolution calling for TVA to initiate large-scale efforts to improve energy efficiency. House Joint Resolution Number 472 noted, "[E]nergy conservation can easily meet and exceed the growing demand for electricity; and….TVA used energy efficient means of creating power in the 1970s to supplant the need to build new power plants." Therefore, the legislature urged TVA to consider using energy efficiency to address the state's growing demand for electricity. In response, TVA has released a suite of pilot energy efficiency programs, including in-home energy auditing programs and prescriptive incentive programs for HVAC technologies. According to the Energy Information Administration, Tennessee utilities reported efficiency program savings of 63,547 MWh in 2007, 0.12% of total retail sales.

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Recent developments show that TVA is increasing its financial commitment to energy efficiency. According to the Energy Information Administration, Tennessee utilities spent $10 million on energy efficiency in 2007, 0.37% of total spending, a significant increase from the $5.5 million spent in 2006.

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None proposed or in place.

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No decoupling or similar mechanism proposed or in place.

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None proposed or in place.

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Energy efficiency is not presently viewed as a viable resource option compared to supply-side resources. Efforts underway may change utility planning and resource procurement to include explicit consideration of energy efficiency as a resource to reduce the need for new supply investments.

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• Tennessee Valley Authority
• Tennessee Regulatory Authority
• House Joint Resolution 472 (calling for increased energy conservation by TVA)
• Database of State Incentives for Renewables and Efficiency
• TVA 2007 Strategic Report
• TVA press release on EE goals

Last Updated 08/18/2009

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