Rethinking Texas’ Investor-Owned Utility (IOU) Energy Efficiency Programs

Nearly 20 years after the EERS goal was first established by the legislature, SPEER presented their Review of the Texas IOU Energy Efficiency Programs report to the PUCT Energy Efficiency Implementation Project (EEIP). The report was the culmination of SPEER’s research and collaborative stakeholder workshops in 2017 and 2018. SPEER’s findings support increasing the state’s energy efficiency goal to .5% of retail energy sales by 2022, and increasing the goal to 1% by 2030.

The report made additional recommendations gathered from stakeholders that will require broader input through the rulemaking process including changes to the avoided cost values, evaluating the impact and contribution of utility load management programs, considering changes to the avoided cost values, and reevaluating the bonus calculation to ensure the utilities are encouraged to exceed both demand and energy goals. The achieved savings of this increased goal will contribute to grid reliability during extreme seasonal peaks, support clean energy investments, and keep costs down for all customers. SPEER supports the initiation of a rulemaking on these recommendations.

A Look Back
In 2017, SPEER published a series of brief reports that examined the history of the IOU energy efficiency programs and policies dating back to 2002. The series summarizes the impacts of energy efficiency programs, the regulations and rules shaping those programs, and the effects of changes that have been made to the programs over the years. This series is provided here to offer policymakers, academics, and other energy efficiency stakeholders with a clear, objective look at significant aspects of IOU energy efficiency programs in Texas.

History of Texas Energy Efficiency Programs Policy Brief Series:

Take a look at this video clip created by Direct Energy “The Journey to a Competitive Electricity Market in Texas” regarding the history of energy efficiency in Texas.