by Brianna Crandall — December 27, 2010—Two states reminded the country last week that bold energy efficiency policies, which will save consumers and businesses millions in wasted energy costs, can win bipartisan support, says the independent, nonprofit American Council for an Energy-Efficient Economy (ACEEE).
On December 10, Arkansas became the first state in the Southeast to adopt a comprehensive set of policies on utility energy efficiency programs, including an Energy Efficiency Resource Standard (EERS), which requires electricity and natural gas providers to meet annual energy savings goals by providing energy efficiency program services.
The Arkansas targets are moderate, rising from an annual reduction of 0.25 percent of total electric kilowatt-hour (kWh) sales to 0.75 percent of total electric kWh sales over the next three years (and slightly less for natural gas sales), but require a high level of verification to ensure that utility companies are fairly rewarded, and that consumers get solid cost benefits, notes ACEEE.
Four days later in Wisconsin, the Joint Committee on Finance approved recommendations set in an order given by the Public Service Commission of Wisconsin (PSCW) to increase funding to Focus on Energy, the statewide energy efficiency provider, and set performance goals that will function as an EERS. An EERS requires electricity and natural gas providers to meet annual energy savings goals by providing energy efficiency program services.
The Wisconsin electricity goals, as a percent of peak load and electric sales, amount to 0.75 percent in 2011, ramping up to 1.5 percent in 2014. The PSCW also approved natural gas goals of 0.5 percent in 2011, ramping up to 1 percent in 2013.
Twenty-six states now have an EERS, accounting for 65 percent of the country’s electricity demand. The policies currently on the books will provide electricity savings equal to six percent of nationwide retail sales by 2020, says ACEEE.
