More than 80 energy, environmental and other organizations on Monday announced commitments and public statements in support of a national action plan for energy efficiency that includes several recommendations for helping states and utilities overcome policy, regulatory and other barriers that limit investment in energy efficiency.

Particularly noteworthy, said the American Gas Association (AGA), is the plan’s recommendation to align utility incentives with the delivery of cost-effective energy efficiency programs. The plan, in further support of energy efficiency, encourages states to modify utility ratemaking practices in order to promote investments in energy efficiency technologies, AGA noted.

Two of the many AGA member companies that already offer energy efficiency programs, Vermont Gas Systems and KeySpan in Massachusetts, were highlighted in the plan. The plan also describes the integrated resource planning model for energy efficiency and conservation that is used by Minnesota members CenterPoint Energy and Xcel Energy, AGA noted.

AGA said that members that have implemented energy efficiency programs similar to ones described in the plan include NW Natural Gas in Oregon, Baltimore Gas and Electric and Washington Gas in Maryland, Southwest Gas in California, Piedmont Natural Gas in North Carolina and Cascade Natural Gas Corp. in Washington. Other AGA member companies have filed for permission to adopt such plans in additional states.

In a 2004 joint statement, AGA, the Natural Resources Defense Council, the Alliance to Save Energy and the American Council for an Energy-Efficient Economy urged state public utility commissions to consider innovative programs that encourage increased total energy efficiency and conservation in ways that align the interests of state regulators, natural gas utility company customers, utility shareholders and other stakeholders.

The Ohio Consumers’ Counsel (OCC) said that the plan, if fully implemented, could help defer the need for 40 new 500 MW power plants, avoid greenhouse gas emissions equivalent to 35 million vehicles, lower the costs of air pollution controls and reduce prices for natural gas.

“By adopting the plan’s recommendations on low-cost, under-used energy efficiency, Americans could save hundreds of billions of dollars on their gas and electric utility bills, cut greenhouse gas emissions, and lower the costs for energy and pollution controls,” the U.S. Environmental Protection Agency (EPA) said. The action plan was developed with assistance from the Department of Energy and U.S. EPA.

The plan’s recommendations include: (1) recognize energy efficiency as a high-priority energy resource; (2) make a strong, long-term commitment to implement cost-effective energy efficiency as a resource; (3) broadly communicate the benefits of and opportunities for energy efficiency; (4) promote sufficient, timely and stable program funding to deliver energy efficiency where cost-effective; and (5) modify policies to align utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking practices to promote energy efficiency investments.

According to the EPA, the plan builds upon best practices from successful efficiency programs already operating in many areas to remove barriers that have limited utilities, states and customers from pursuing cost-effective energy efficiency resources.

The action plan was developed by a leadership group of more than 50 organizations, which was co-chaired by Jim Rogers, CEO of Duke Energy and president of the Edison Electric Institute, and Commissioner Diane Munns, member of the Iowa Public Utility Board and president of the National Association of Regulatory Utility Commissioners.

The leadership group includes 23 electric and gas utilities, 16 state agencies and 12 other organizations, with 15 organizations observing the work of the leadership group. As part of Monday’s announcement, 72 stakeholders across 33 states announced commitments to take action within their own organizations to increase investment in energy efficiency.

“This action plan creates the building blocks for a sustainable energy efficiency and conservation effort that must be part of a portfolio approach to meeting our nation’s growing energy needs,” said Rogers.

Duke Energy said that in concert with the action plan’s rollout, the company is renewing its commitment to advance energy efficiency and conservation programs in the five states in which the company’s U.S. utilities operate — Indiana, Kentucky, North Carolina, Ohio and South Carolina.

Duke Energy noted that Duke Energy Indiana (then PSI Energy) launched its first comprehensive set of energy efficiency programs in 1990. Since that time, Duke Energy Indiana has invested more than $150 million in energy efficiency. Over half of the company’s Indiana customers — approximately 350,000 — have participated in one or more of Duke Energy’s efficiency programs, saving more than $300 million on their electric bills.

Duke Energy said it will begin a revitalized energy efficiency push by working with regulators and key energy stakeholders in each of its states to build upon existing programs such as the company’s Personalized Energy Report and Energy Star programs, which have been implemented in Kentucky and North Carolina, respectively.

Through a series of state workshops beginning in fall 2006, Duke Energy will reach out to various stakeholders to “explore innovative efficiency and conservation programs that ensure sustainable investment in energy efficiency.”

“Energy efficiency can help stretch existing supplies to meet summer air conditioning demand,” said Anne Shen Smith, senior vice president of customer services for San Diego Gas & Electric (SDG&E). “Also, it helps reduce customer bills and helps preserve the environment.'” SDG&E is one of dozens of entities — including utilities, regulators and consumer groups — that have adopted the plan.

Smith noted that last year alone, “our energy efficiency programs saved more than 75 megawatts — enough to fuel a small power plant throughout the summer.”

The OCC’s Janine Migden-Ostrander was part of the leadership team that helped to develop the action plan. “It is very important that Ohio partner with the rest of the nation as we look to implement measures to reduce our dependence on non-renewable resources, like coal and natural gas, to supplement our energy needs,” Migden-Ostrander said. “By implementing energy efficiency programs, consumers can begin to reduce their energy consumption and gradually lower their energy bills.”

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