Electric Efficiency Standard
Indiana's investor-owned electric utilities offer energy efficiency programs that help you reduce electricity use through measures like weatherization, lighting upgrades, HVAC improvements, and audits. You can access these programs through your utility company (Duke Energy, NIPSCO, AES Indiana, CenterPoint Energy, or Indiana Michigan Power), and utilities recover program costs through a dedicated rate rider, so costs are spread across your bill rather than paid upfront for most measures.
These utility-administered programs create demand for energy efficiency services across residential, commercial, industrial, and low-income sectors. Contractors should engage directly with the participating utilities' efficiency program administrators to understand incentive structures, customer eligibility, rebate application processes, and measurement and verification requirements, as each utility designs its own program details within the IURC-approved framework.
Indiana's IURC mandated that five investor-owned utilities achieve incremental annual electricity sales reductions, reaching 2.0% by 2019 and holding at that level thereafter. Utilities file three-year DSM plans (most recently required by end of 2017, then every three years) covering five core programs—residential lighting, home energy audits, low-income weatherization, efficient schools, and commercial/industrial—funded through a DSM Cost Rider recovered in rates. Third-party evaluators independently verify savings, and oversight boards (including OUCC participation) monitor performance and cost-effectiveness across all utility plans.
Program details
- Program ID
- 4502
- Last updated
- 6/30/2025
Eligibility
- Sectors
- investor-owned utility retail supplier
- Technologies
- combined heat & power dishwasher refrigerators/freezers lighting lighting controls/sensors chillers boilers heat pumps air conditioners compressed air roofs motor vfds custom/others pending approval other ee food service equipment led lighting commercial refrigeration equipment
Program summary
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 Program
- Energy efficient schools program
- Commercial 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.
Contact & resources
- Contact email
- bborum@urc.in.gov
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
