Update on Utility Energy Efficiency Programs in the Southwest

Funding for electric utility demand-side management (DSM) programs in Arizona, Colorado, Nevada, New Mexico, Utah and Wyoming (the states covered by SWEEP) is expected to reach $171 million in 2008, up from just $29 million in 2002. Five major utilities in the region reduced electricity use by 748 GWh per year and cut peak demand by 195 MW from DSM programs implemented in 2007, nearly three times the level of energy savings achieved by these utilities in 2004-2005. This paper reports on the growth in funding, level of energy savings being achieved, and key elements of electric utility-sponsored DSM programs in the southwest region. It describes the policies stimulating expansion of DSM programs including financial incentives for utility shareholders. The paper also discusses innovative DSM programs underway in the region and the influence of climate change policies on utility DSM programs.

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