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Summary
Utah's utilities administer and implement energy efficiency programs as required by the Utah Public Service Commission. These programs are part of integrated resource plans that are filed biennially by the utilities. Programs are funded via a 3% tariff rider on customer bills. Utah's integrated resource planning requirements were established in 1992. Utah's funding and commitment to energy efficiency programs has increased significantly over the past several years. Utah’s main natural gas utility, Questar Gas, began implementing efficiency programs in 2007 and is currently testing a pilot decoupling program .
Utah has enacted legislation that urges Utah's Public Service Commission to require electric utilities to reduce the state's energy consumption by 1% annually. The bill also calls for natural gas utilities to save 0.5% annually.
Integrated resource planning has been in place since 1992. Utilities file biennial integrated resource plans which include demand-side resources and associated programs. |
| Customer Energy Efficiency Programs |
The state's principal investor-owned utility, Rocky Mountain Power (RMP), administers and provides a comprehensive set of energy efficiency programs as part of integrated resource planning. The Utah Public Service Commission reviews and approves these plans and associated program plans and budgets. RMP claims that it saved 195 GWh in 2008, exceeding its goal by 21%. In 2007 and 2008, Questar Gas efficiency programs saved 512,000 Dth.
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Questar Gas spent $10 million in 2007 and $18 million in 2008 on gas efficiency programs. Electric efficiency programs are funded through a 3% tariff rider on customer bills. Utah's funding and commitment to energy efficiency programs has increased significantly over the past several years.
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| Energy Efficiency Resource Standard |
House Joint Resolution (HJR) 9 urges the UT PSC to set energy savings goals of at least 1% per year for regulated electric utilities and at least 0.5% per year for gas utilities. The bill does not penalize utilities that do not meet the savings goals, as long as they make good faith efforts. A docket is open at the PSC (09-035-T08) that is reviewing a wide range of DSM policies including (but not limited to) the issues addressed in the resolution.
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No decoupling mechanism is in place for electric utilities. Decoupling reduces the financial disincentive for utilities to support energy efficiency by separating utilities’ profits from their levels of sales. On October 5, 2006, Questar Gas was approved to implement a 3 year Conservation Enabling Tariff (CET) and Demand-Side Management (DSM) Pilot Program. The CET allows Distribution Non-Gas (“DNG”) revenues received by Questar to be based on the number of customers rather than customers’ gas usage. (This is a form of decoupling.) On June 24, 2009, the Pilot Program was extended to operate until December 31, 2010 (PSC Docket No. 05-057-T01, October 2006). HJR 9 also encourages the Utah Public Service Commission to remove financial disincentives to utility efficiency programs.
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| Reward Structures for Successful Energy Efficiency Programs |
HJR 9 expresses support for regulatory mechanisms, which might include performance-based incentives, intended to help remove utility disincentives and create incentives to increase efficiency and conservation so long as these mechanisms are found to be in the public interest.
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| Energy Efficiency as a Resource |
Integrated resource planning has been in place since 1992. Utilities file biennial integrated resource plans which include demand-side resources and associated programs.
Additionally, in March 2009, the Utah Legislature passed HJR 9, a Joint Resolution on Cost-effective Energy Efficiency and Utility Demand-Side Management. This resolution recognizes the multifaceted benefits of utility energy efficiency and sets non-binding energy savings goals of at least 1 percent per year for Utah’s electric corporations and at least 0.5 percent per year for Utah’s natural gas utility corporations.
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Last Updated
10/19/2009
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