Energy Efficiency Study Released

Energy Efficiency Study Released

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The OMA this week released research on the economic effects of the state’s energy efficiency standards for electric utilities.  The research finds that energy efficiency remains the least-cost strategy for constraining electricity costs.  The study projects direct and indirect savings of almost $5.57 billion for customers in avoided energy expenditures and reduced wholesale energy and capacity prices, and assumes energy efficiency investments of $2.7 billion.

The OMA recommended several improvements to the operation of utility energy efficiency programs designed to protect large users of electricity: 

  • Large power user self-direct program:  This proposal is modeled on a program of Puget Sound Energy, which our researchers think is probably the best program in the country geared to large industrials.  Under the program, 90% of a larger user’s energy efficiency charge would be retained for use by the company; the other 10% would be used by the utility to manage the program.
  • Cap on energy efficiency rider:  Under this proposal, no customer could be charged more than $25,000 per month for energy efficiency programs.

Read an overview of the research here