Report: Utilities Major Force Behind Energy Efficiency Savings

A new report published by the Institute for Electric Efficiency (IEE) finds that electric energy efficiency savings are on the rise in the U.S.—and that electric utilities accounted for a vast majority of ratepayer-funded electric efficiency expenditures in 2010.

The new IEE report, “Summary of Ratepayer-Funded Electric Efficiency Impacts, Budgets and Expenditures (2010-2011)” surveyed information from 195 organizations: 172 electric and combined utilities, 10 non-utility energy efficiency administrators, and 13 organizations that declined to release their data at the organizational level.

Among its major findings are that ratepayer-funded energy efficiency and demand response programs in the U.S. saved 112 million megawatt-hours in 2010—a savings increase of 21% over 2009 levels, or nearly 20 million MWh. The IEE projects that total savings from these energy-efficiency programs will continue double-digit increases in the future.

Investment in efficiency was ramped up in 2010. Efficiency expenditures totaled $4.8 billion, representing an increase of 28% over the prior year. Electric utilities accounted for 88% of all ratepayer-funded electric efficiency expenditures in 2010, which reached a total of $6.8 billion in 2011.

In looking at the U.S. Census regions, the IEE report found that the Midwest had the largest percent increase in electric efficiency savings between 2009 and 2010 (38.9%), followed by the Northeast (38.5%), the South (19.8%), and the West (5.3%). The IEE report also found that relative to their 2010 budgets, 37 states increased their 2011 energy efficiency budgets. And the overall increase in 2011 budgets relative to 2010 budgets was 25%.

Source: IEE