Energy Efficiency--Electricity and Gas
The Corporation Commission has long recognized the value of energy efficiency and the benefits from the existing programs at regulated utilities and has approved rules to address how to expand energy efficiency efforts and align incentives to harness greater benefits for consumers.
The electricity rules require public utility companies to design Demand Side Management (DSM) programs that are cost effective and promote energy efficiency, load management, or demand response. DSM programs focus on providing tools and incentives for customers to reduce their energyusage, thereby providing benefits such as lowering their energy bills, more effectively managing peak demand periods, and mitigating the need to build more generation and transmission infrastructure, keeping overall energy costs down for everyone. Examples of Demand Side Management programs include weatherization, home energy audits, promoting the use of compact fluorescent bulbs, and replacing home appliances to more efficient models. Arizona’s public utilities will be required to achieve annual energy savings of at least 22%—measured in kWh—by 2020, with the savings to increase incrementally as a percent of retail energy sales in each prior calendar year to reach that goal.
Gas utilities will be required to achieve annual energy savings of at least 6 percent by 2020, with the savings to increase incrementally as a percent of retail energy sales in each prior calendar year to reach that goal. The companies will be able to reach this goal through both demand side management (DSM) and renewable energy resource technology (RET) programs.
Up to one-third of the energy savings can result from energy efficient building codes and up to one-third of the savings can come from energy efficient appliance standards. Utilities can also count energy savings from individual customers who adopt efficient home or business practices and technologies. In addition, utilities can count all energy savings resulting from RET projects that displace gas usage by customers.
Application to Open Docket for the Investigation of Regulatory and Rate Incentives for Gas and Electric Utilities, June 19, 2008
Correspondence from Commissioners to outside parties, June 24, 2008:
Correspondence from RUCO, February 19, 2009:
Comments from APS, February 20, 2009:
Response from Tucson Electric Power, February 20, 2009:
Response from Southwest Gas Corporation, February 20, 2009:
Testimony from Jeff Schlegel, on behalf of the Southwest Energy Efficiency Project (SWEEP), March 5, 2009: