Utility Program Overview
Utility energy efficiency and load management programs, also
known as demand-side management or DSM programs, are a primary strategy
for increasing energy efficiency in the Southwest and throughout
the United States. Utilities educate customers, provide rebates
and other financial incentives, and offer technical assistance in
order to increase the adoption of cost-effective energy efficiency
measures. The rationale for such programs is that it is far less
costly to save energy than to supply energy from any new source,
and it is better for the environment too.
SWEEP actively promotes the expansion and improvement of utility
energy efficiency programs in the region. We work on legislation
to establish energy savings goals or requirements, convenient program
cost recovery, and financial incentives so that utilities and their
shareholders are not penalized when they help their customers save
energy. We advise utilities as they design and operate energy efficiency
programs, and we frequently appear before state utility commissions
when rules concerning or plans for utility energy efficiency programs
are under review.
As shown in the table below, total funding for electric utility
energy efficiency and load management (DSM) programs in the region
increased from about $29 million in 2002 to about $240 million in
2009, a 35% average annual growth rate. Funding for gas utility
energy efficiency programs in the region increased from about $11
million in 2007 to $70 million in 2009. SWEEP played a major role
in fostering this rapid growth.
Electric Utility Spending on DSM Programs in the Southwest,
2002-09
|
State
|
DSM program budget
(million $ per year)
|
|
2002
|
2004
|
2006
|
2007
|
2008
|
2009
(est.)
|
|
AZ
|
4
|
4
|
19
|
32
|
40
|
50
|
|
CO
|
11
|
21
|
18
|
32
|
28
|
56
|
|
NV
|
3
|
11
|
30
|
27
|
55
|
60
|
|
NM
|
1
|
1
|
1
|
4
|
10
|
16
|
|
UT
|
9
|
16
|
27
|
28
|
36
|
65
|
|
WY
|
~0
|
~0
|
~0
|
~0
|
1
|
3
|
|
Region
|
29
|
54
|
95
|
123
|
170
|
250
|
Utility energy efficiency programs in the region are yielding
significant benefits. SWEEP estimates that households and businesses
will save over $2 billion as a result of utility DSM programs implemented
during 2003-09 (see Table below). These programs have already cut
carbon dioxide emissions be over 8 million metric tons, with even
greater reductions in the future due to energy efficiency measures
now in operation. And the programs are reducing load growth and
thus reducing the need for costly and controversial new power plants.
Electricity Savings, Net Economic Benefits, and Avoided CO2
Emissions from Utility DSM Programs in the Southwest
|
Year
|
First-year Energy Savings
(GWh/yr)
|
Energy Savings from Cumulative Programs
(GWh/yr)
|
Net Economic Benefits from Annual Programs1
(Million $)
|
Avoided CO2 Emissions2
(1000 metric tons)
|
|
2003
|
175
|
175
|
113
|
122
|
|
2004
|
239
|
414
|
146
|
290
|
|
2005
|
280
|
694
|
189
|
486
|
|
2006
|
476
|
1,170
|
256
|
819
|
|
2007
|
743
|
1,913
|
332
|
1,339
|
|
2008
|
1,046
|
2,959
|
459
|
2,071
|
|
2009 (est.)
|
1,540
|
4,499
|
686
|
3,149
|
|
Total
|
4,499
|
--
|
2,181
|
8,276
|
Follow the links below for information on Utility Energy Programs
in each state:
|
