Energy Efficiency Resource Standards

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Energy Efficiency Resource Standards ( energy-efficiency-resource-standards )

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Submitting an energy efficiency plan to the Commission helps ensure that the public has the opportunity to participate in the program planning process and ensure that programs produce actual benefits. It is important for utilities to provide the Commission with program spending and savings data on a programmatic basis so that the Commission, upon review, has a baseline level of information for comparison purposes. As part of any energy efficiency plan portfolio, it is essential that programs targeted toward low-income customers are included as energy costs tend to be a disproportionately large percentage of these customers’ incomes. Moreover, studies have shown that these programs successfully reduce energy use and costs for low- and limited-income households while at the same time improving the quality of life for low-income citizens, and upgrading the buildings they occupy. Beyond these very real and direct benefits associated with improved energy efficiency, these programs yield numerous other benefits to household occupants, the community and utility services providers. Low-income energy efficiency programs can be done under a variety of structures and they can span a wide scope in terms of the size of the program and the types of services provided, from audit programs offered by small cooperative utilities to statewide programs with multiple program partners offering comprehensive energy services (York et al. 2005). Because of their particular focus on the special needs of disadvantaged households, low-income energy efficiency programs are generally not held to the same cost-effectiveness criteria as utility energy efficiency “resource” programs (i.e., they are not judged with a strict TRC test). Although specific low- income programs may not individually be cost-effective, the entire portfolio of programs proposed by the utility should, as a whole, be cost-effective. As such, more typically, the focus is on the magnitude of utility bill savings to participating customers, rather than the utility system avoided production costs. Also, low-income programs often include broader “non-energy benefits” such as lowered credit and collection costs and avoided bad debt for the utility, and improved health and safety for customers (York et al. 2005). 13

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