Electric Efficiency Standard

In December 2009, the Indiana Utility Regulatory Commission's (IURC) ordered utilities to establish demand-side management (DSM) electric savings goals leading to 2.0% reduction of electricity sales by the year 2019. Utilities under IURC jurisdiction must file three-year DSM plans, beginning in July of 2010, which indicate progress and plans for reaching the annual incremental electricity savings targets. Electricity Sales Reduction The IURC established an electricity savings goal of incremental annual sales reduction over the previous three year average electricity sales. Each year's benchmark is set by the preceding three year average electricity consumption, beginning July 1 of that year. After obtaining 2.0% reduction by the year 2019, the electricity sales reduction percentage holds at 2.0% for every year thereafter. Calendar Year Electric Sales Reduction 2010 0.3% 2011 0.5% 2012 0.7% 2013 0.9% 2014 1.1% 2015 1.3% 2016 1.5% 2017 1.7% 2018 1.9% 2019 2.0% Non-Compliance Demand-side management plans shall be filed on July 1 in 2010, 2013, 2016, and 2019, with annual supplemental updates in the interim periods. Utilities that do not meet the electricity reduction goals must demonstrate to the IURC how they plan to alter or add programs to increase savings. DSM Programs In July 2011, IURC selected a third party administrator to administer, evaluate, measure, and verify the core DSM programs. Separately, the 2009 ruling identified five core programs that utilities must provide. Programs are funded using a DSM and Energy Efficiency Program Cost Rider. Utilities are free to develop and administer other DSM programs, but must provide the five core programs: Residential lighting program Home energy audit program Low Income Weatherization ProgramEnergy efficient schools programCommercial and Industrial Program In 2012, utilities, the Indiana Office of Utility Consumer Counselor, and the Citizens Action Coalition collaborated to form Energizing Indiana in order to administer the core efficiency programs for participating utilities. Some utilities administer their own efficiency programs either in addition to or separate from the Energizing Indiana programs.