State EERS Success Stories January 2009

Over the past decade, six states have taken the lead on enacting, implementing, and achieving significant energy savings with an Energy Efficiency Resource Standard (EERS).

• o Texas became the first state to establish an EERS in 1999, requiring electric utilities to offset 10% of load growth through end-use energy efficiency. After several years of meeting this goal at low costs, in 2007 the legislature increased the standard to 15% of load growth by 2009, 20% of load growth by 2010 and directed that higher targets be investigated. A recent report commissioned by the PUCT found that raising the goal to 50% of load growth is feasible.
• o Efficiency Vermont was created in 2000 as an independent "efficiency utility" that delivers efficiency programs for the state. It is contractually required to achieve energy savings and demand reduction goals. EV cumulatively met over 7% of Vermont's electricity requirements by the end of 2007, with programs in that year alone meeting 1.75% of the state's electricity needs. New goals for 2009-2011 call for saving about 2% per year.
• o In 2004, California set energy savings goals for investor-owned utilities for 2004 through 2013, which are expected to save more than 1% of total forecast electricity sales per year. In the early years, savings were less than 1% per year, but in 2007, measures installed that year met 1.5% of the state's electricity needs.
• o Under Hawaii's Renewable Portfolio Standard (RPS) requirements, in place since 2004, energy efficiency qualifies as an eligible resource. Utilities must meet 20% of electricity sales with eligible resources by 2020, with no limit on how much may be met by energy efficiency. In recent years, Hawaii has been achieving between 0.4 – 0.6% energy savings per year through energy efficiency.
• o In June 2005, the Connecticut legislature modified its RPS to include efficiency. Starting in 2007, the state's utilities must procure a minimum 1% of electricity sales from "Class III" resources such as energy efficiency and CHP, with an additional 1% required in 2008, 2009, and 2010. Savings in 2007 were 1.04% of sales. In 2007, the Connecticut legislature added a requirement for utilities to acquire "all cost-effective efficiency." In response, the state's utilities filed a plan with savings averaging about 1.5% per year over the 2009-2018 period.
• o In 2001, the Nevada legislature enacted RPS legislation. In 2005, the RPS was expanded from 15% to 20% of electricity sales by 2015, and was amended to allow energy efficiency to meet up to 25% of the total portfolio standard. The state's utilities are quickly ramping up efficiency programs to hit the maximum allowed efficiency threshold. Energy efficiency measures installed in 2006 accounted for 0.6% of sales.