Friday, December 30, 2011

Maryland PIRG: Release: Order gets utilities back on track to hit EmPOWER goals

PUBLIC SERVICE COMMISSION HOLDS UTILITIES ACCOUNTABLE TO ENERGY EFFICIENCY GOALS

Release: Order gets utilities back on track to hit EmPOWER goals

Baltimore-The Maryland Public Service Commission toughened last week when they issued an order reaffirming Maryland’s commitment to meeting statewide energy efficiency goals.

The commission’s order takes decisive action to get utilities back on track to reach EmPOWER Maryland goals in the next three-year phase of EmPOWER programs.

The General Assembly passed the EmPOWER Maryland Energy Efficiency Act in 2008, setting a statewide goal of reducing per capita electricity consumption 15% by 2015. Two-thirds of those savings must come from utility companies, which are regulated by the Public Service Commission.

To date, the utilities are falling behind on this goal- if they continue at their current pace they will only achieve 46% of their goals for electricity savings according to a 2011 Maryland PIRG report.

Since 2008, Maryland PIRG has worked to hold utility companies accountable to the EmPOWER Maryland goals.

We have submitted testimony and released a series of reports on progress to date toward the EmPOWER goals and the steps the PSC needs to take to get back on track.

The recent Public Service Commission order draws on many of these recommendations to make up the shortfall in the current trajectory and how they plan to hold utilities accountable. Key recommendations include:

· Re-assessment of the cost-effectiveness measurement, to possibly include programs that provide wider societal and economic benefits

· Increased standardization of programs and benefits across service areas, to better facilitate implementation

· Transitioning low-income energy efficiency programs to the Department of Housing and Community Development, consolidating and standardizing execution

“Maryland PIRG has been pushing for many of these recommendations for years, and it’s great to see the PSC taking the bull by the horns to deliver the electricity savings that Maryland consumers desperately need,” said Carly Mercer, an Associate with Maryland PIRG.

According to the PSC, “an estimated 235,000 Marylanders and businesses have participated in the first wave of EmPOWER programs, which have saved consumers $91 million annually and 702,000 annual MWh as of September 1, 2011.”

But utilities need to seriously expand participation if Maryland is to hit its goals, and the PSC order is a step in the right direction, reaffirming our commitment to making Maryland a leader in energy efficiency.

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