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State Energy Efficiency Policy Database

Oklahoma

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Summary

Oklahoma utilities offer a limited set of programs. One of the two main IOUs in the state, Oklahoma Gas and Electric, has a goal to build no new generation until at least 2020. So far, OG&E has mostly eschewed energy efficiency programs for demand response, becoming one of, if not the national leader in the deployment of “smart grid” technologies such as smart meters. Energy efficiency still does play a role, albeit limited, as a resource for the state’s utilities. In 2008, the Oklahoma Corporation Commission initiated a "Demand Programs Collaboration" to examine issues associated with the funding and provision of customer energy efficiency programs by the state's energy utilities. The Commission approved a portfolio of demand-side management programs proposed by the state’s other main IOU, AEP Public Service Oklahoma (PSO). 

Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables

The state’s IOUs may recover lost revenues and earn an incentive for implementing successful energy efficiency programs. 

In 2009, the state legislature authorized municipal utilities and the Grand River Dam Authority to spend money encouraging energy conservation activities (S 293, enacted as Chapter 205).

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March 28, 2013


Customer Energy Efficiency Programs

Oklahoma's major utilities, Public Service Oklahoma and Oklahoma Gas and Electric are running limited sets of programs. The Oklahoma Municipal Power Authority also offers energy efficiency incentives. 

In 2008, the Oklahoma Corporation Commission initiated a "Demand Programs Collaboration" to examine issues associated with the funding and provision of customer energy efficiency programs by the state's energy utilities. The Commission also approved in Cause 200700449, Order 555302 a portfolio of demand-side management programs proposed by PSO in accordance with a 2006 Commission order (Cause 200600285 Order 545168).

The proposal laid out a five-year plan and budget that estimated spending $3.95 million in 2008, ramping up to $6.25 million for the final three years. In its first year, the proposal planned to save 20,000 MWh. The programs included ENERGY STAR New Homes and Residential and Small Commercial Appliances Programs, as well as large commercial and industrial programs.

According to the Energy Information Administration, Oklahoma utilities reported electric program savings of 20,300 MWh in 2009.

Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.

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March 28, 2013


Energy Efficiency Program Funding

According to the Consortium for Energy Efficiency, Oklahoma electric utilities budgeted $27.9 million for 2010 efficiency programs.  Reported budgets for energy efficiency programs for 2011 are in the State Spending and Savings Tables.


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March 28, 2013


Energy Efficiency Resource Standards

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.


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March 28, 2013


Alternative Business Models

Both Public Service Oklahoma (PSO) and Oklahoma Gas and Electric Company (OG&E) currently have shared benefit incentive plans that are paid in addition to 100% program cost recovery and lost revenue recovery mechanisms. Additional revenue recovery mechanisms will be determined on a case-by-case basis. (Cause No. PUD 200700449, ID No. 3710105. April 8, 2008)

The Commission declined to adopt decoupling (termed a formula-based rate) proposed by Public Service Co.  The Commission found, however, that the mechanism has merit and said it will re-examine the issue in the future if other parties wish to file proposals (Cause 200600285, Order 545168, October 2007).

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October 12, 2012


Reward Structures for Successful Energy Efficiency Programs

Both Public Service Oklahoma (PSO) and Oklahoma Gas and Electric Company (OG&E) currently have shared benefit incentive plans. The shared savings program for Public Service Oklahoma allows for 1) an incentive of 25% of net savings for programs for which electric energy savings can be estimated and 2) an incentive of 15% of the costs for programs that do not produce savings such as educational or marketing programs (Cause No. PUD 200700449; Order 555302).


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October 12, 2012


Energy Efficiency as a Resource

There is currently no policy in place that treats energy efficiency as a resource.

For more information on energy efficiency as a resource, click here.


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March 28, 2013


Evaluation, Measurement & Verification
  • Cost-effectiveness test(s) used: TRC, UCT, PCT, SCT, RIM
  • Uses a deemed savings database: no

The evaluation of ratepayer-funded energy efficiency programs in Oklahoma relies on regulatory orders (Title 165 CC Chapter 35 Electric Utility Rules). Evaluations are mainly administered by the utilities. However, the Division of Energy Resources and staff from the Oklahoma Department of Commerce also assists in the evaluation administration. Evaluations for each of the utilities are conducted. There are no specific legal requirements for these evaluations in Oklahoma. Oklahoma uses all of the five classic benefit-cost tests identified in the California Standard Practice Manual. These are the Total Resource Cost (TRC), Utility/Programs Administrator (UCT), Participant (PCT), Social Cost (SCT), and Ratepayer Impact Measure (RIM). Oklahoma specifies the TRC to be its primary test for decision making. The benefit-cost tests are required for overall portfolio, total program, customer project, and individual measure level screening, with exceptions made for low-income programs, pilots, and new technologies. The rules for benefit-cost tests are stated in Title 165 CC Chapter 35 Electric Utility Rules.

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March 28, 2013