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Actual vs. Equitable (E3b) spending for Utility B gas EWR programs between 2010-2016. Source: EWR Annual Reconciliation Reports (Utility B Energy, 2010-2016), US Census Bureau 5-year ACS 2015, Michigan Agency for Energy.
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State policies providing residential energy efficiency programs have emerged over the past decade with the goal of producing widespread economic and environmental benefits. While these policies have largely achieved and surpassed legislated objectives, the degree to which program benefits are distributed amongst population subgroups, particularly l...
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... Despite well-documented inequalities in low-income household energy efficiency and affordability, utility energy efficiency investments are not necessarily distributed equitably across socioeconomic groups. 7 Moreover, although most utility-sponsored energy efficiency programs are ratepayer funded, with ratepayers contributing proportionately based on their consumption, some stakeholders have expressed concerns about whether low-income consumers receive a fair proportion of annual investments. 8 Several studies have sought to measure the performance of state and utility-sponsored energy efficiency portfolios targeting low-income consumers using metrics such as per capita investments, number of participants (as percent of customers), whether savings per property are maximized, and energy savings per participant. ...
OVERVIEW State Energy Efficiency Resource Standards (EERS) have emerged across the United States, becoming prevalent in the early 2000's. EERS policies are state laws that require utilities to pursue energy efficiency as a cost-effective energy resource. As a result, billions of dollars have been invested in improving residential energy efficiency. The expressed goals of EERS policies include providing consumers direct economic savings by reducing wasted energy, and indirectly through avoided costs of constructing additional power plants. In 2016 alone, twenty nine EERS states invested 5.6 billion of spending by eleven Investor-Owned-Utilities (IOUs) from 2012-2021, located in six EERS states: Connecticut, Colorado, Illinois, Massachusetts, Michigan, and Minnesota. The study reveals various distribu-tional disparities in low-income investments and investment trends among utilities, with most underperforming relative to the E3b. However, recent trends suggest improvement by large utilities. Policy revisions, stakeholder intervention, and utility decision-making is beginning to shift this trend.
