Utilities and the Power Sector

Electricity demand is projected to grow 20–50% over the next decade, fueled by data centers, new domestic manufacturing, and the electrification of transportation and heating. Many states are responding by approving expensive new power plants, but this is a slower, more expensive approach that locks in emissions. ACEEE analysis shows that energy efficiency costs are well below any supply-side alternative, and that load flexibility can reduce peak demand at a fraction of what new generation costs. The tools exist. The question is whether utilities and regulators will deploy them at the scale this moment requires.

ACEEE’s utilities work operates at multiple levels. We publish rigorous, independent research on efficiency costs, program performance, and demand flexibility potential that gives regulators and legislators the evidence they need to set strong requirements and hold utilities accountable. We engage directly with state public utility commissions and utility program managers to translate research into policy and program improvements. Through our State Scorecard and Utility Scorecard, we track how states and utilities are performing and create the public benchmarking to guide decision-makers forward. We convene working groups and coalitions that bring together utilities, regulators, advocates, and technology providers to solve shared challenges. We work to close the gap between what utilities spend on low-income efficiency programs and the scale of need, and we support rate design reforms that reduce energy bills for households spending the largest share of their income on power.

What we work on

• Utility Resource Planning and Policies — How states set efficiency requirements, how utilities plan for and procure demand-side resources, and how regulators can drive greater investment in efficiency as a grid resource.
• Efficiency, Flexibility, and Rate Design Programs — The design and performance of utility efficiency programs, demand flexibility and virtual power plants, and rate structures that reduce energy burdens and support electrification.
• Decarbonization — How states and utilities can tie efficiency to their decarbonization commitments, reduce grid emissions, and ensure the transition is just for workers and communities.