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Energy Efficiency

Efficiency Texas Coalition

Good Company Associates led the effort to bring together a broad-based coalition of electricity consumers interested in reducing their electricity consumption, peak power demand and electricity costs by expanding and improving the electric utility efficiency programs offered in Texas. Efficiency Texas includes commercial building owners, retailers, churches, environmental organizations, citizen groups and small businesses. The Coalition represents over 40,000 retail stores, more than four million individuals and nearly one billion square feet of building and office space. As a result of our efforts on behalf of Efficiency Texas, utilities will invest an addition $1 billion of incentive funds, targeted to stimulate cost-effective efficiency improvements over the next decade.

History

As part of the 1999 Texas Electric Restructuring Act (SB7), the Texas Legislature required each investor-owned electric utility to offer cost-effective, market-based energy efficiency programs to meet at least ten percent of the utility’s annual electric load growth on a going-forward basis. The Public Utility Commission of Texas subsequently established rules to administer the legislative mandate and to ensure that all consumer classes – residential, commercial and industrial – benefited from the efficiency programs.

Issue

While the Texas energy efficiency programs have been successful, Texas can do more. Texas lags behind many key industrial states in its spending on energy efficiency programs no matter how you measure it. And, given that Texas uses more electricity than any other state in the U.S., that it has one of the highest rates in demand for new electricity, and that electricity prices for residential, commercial and industrial consumers here are above the national average, and well above the regional average, increasing our efficiency is imperative.

Customer demand for utility efficiency programs is extraordinary, which has brought on the need for expanded funding and increased program availability. The most important utility efficiency programs are often oversubscribed, which leaves large numbers of customers unable to obtain efficiency incentives or the cost savings that would have come with efficiency improvements. Additionally, the environmental benefits associated with energy efficiency – mainly reduced air pollution – go unrealized as a result of under-funded programs. Efficiency Texas wants to expand and widen these programs so all Texans can tap into the many benefits of energy efficiency.

Solution

Efficiency Texas desires electric utility energy efficiency programs to be available year-round and fully-funded so that consumer demand for such programs is met. To meet its goals, Efficiency Texas supports cost recovery and appropriate incentives for utilities that exceed the minimum energy efficiency goal mandated by the Texas Legislature in 1999. In short, it’s time to align the financial incentives of Texas’s regulated utilities with desires of consumers seeking the benefits of efficiency programs.

By substantially increasing Texas’s energy efficiency through expanded funding for efficiency programs, Texas will further reduce its electricity consumption, bring new energy cost savings and more greatly curtail emissions from power plants. Additionally, increased efficiency will offset the need for expensive new power plants and help stabilize the ERCOT electricity market, which is entering an important new phase of competition.

With rising electricity prices due to increasing fuel costs, growing concerns about air pollution, a stressed electric power grid, energy efficiency has never been more important to Texas. By expanding funding for the energy efficiency programs and improving the way in which the programs are run, the energy, cost and environmental benefits of energy efficiency can be maximized in Texas.

List of Members

Efficiency Texas Non-Profit Members:

Efficiency Texas Corporate Sponsors:

Gold

Direct Energy

Silver

ClimateMaster

Bronze

Practice Areas
Legislative and Regulatory Policy
Market Research & Business Development
Program Design and Implementation
Efficiency Texas Coalition
Energy Storage

For more information please contact Good Company Associates