CEE Annual Industry Report Released
Demand Side Investments Hit $8.0 Billion

March 24, 2014

Boston, MA—The Consortium for Energy Efficiency (CEE) today releases its eighth Annual Industry Report, deepening the picture of US and Canadian energy efficiency and demand response investments. CEE’s annual review of the industry, including detailed survey responses from 361 utility and nonutility programs, shows that program investments and budgets continue to rise, with corresponding growth in savings. 2013 budgets climbed to a record $9.6 billion, and US and Canadian combined gas and electric demand side investments reached $8.0 billion from all sources in 2012.

New in this year's report is the collection of funding from all sources for electric efficiency in addition to ratepayer funds. For example, wholesale capacity market revenues, regional carbon market funds, weatherization assistance programs, and other sources were gathered. This years’ survey also pursued an unprecedented level of inquiry into underlying programmatic details, deepening understanding of the Industry.

 

 
"The report results clearly illustrate the resiliency of program administrators as they deliver ever greater impacts over and above their impressive past."
Ed Wisniewski,
CEE Executive Director

 

 
CEE 2013 Annual Industry Report 2013

“The report results clearly illustrate the resiliency of program administrators as they deliver ever greater impacts over and above their impressive past,” stated Ed Wisniewski, Executive Director of CEE. “Considering such achievements occurred during a period of economic downturn, volatile and relatively depressed natural gas costs, and following aggressive federal standard setting largely enabled by programs, this is quite a remarkable achievement.”

Total expenditures grew to $8 billion in 2012, a nine percent increase from $7.4 billion in 2011. Natural gas program expenditures in the United States and Canada rose 16 percent in 2012, to just over $1.2 billion. Interestingly, US and Canadian program administrators spent over $1.1 billion from all sources on demand response programs in 2012, representing increases of nine percent over 2011. The expected emergence of connected devices may enable greater impacts from demand response investment. 

CEE member programs accounted for 81 percent, nearly $6.6 billion, of expenditures from both ratepayer and other sources of funding. Thanks in great part to the resources and cooperation of the CEE membership, CEE is able to collect data directly, at an incrementally granular level, and with enhanced consistency. Collectively, this provides an increasingly accurate snapshot of the US and Canadian Industry.

Thanks to major contributors American Gas Association, who provided survey responses from their utility membership, and the Edison Foundation Institute for Electric Innovation, who provided financial assistance, CEE obtained data from 361 of the larger utility and nonutility organizations administering efficiency programs in 49 states, the District of Columbia, and seven Canadian provinces. CEE, AGA, and the Institute are confident they have been able to reach the overwhelming majority of administrators since 2011.

“The role of demand side resources continues to expand in importance in optimizing the nation’s power grid. This report shows that US electric utilities are committed to providing smart energy solutions that deliver broad-based benefits,” said Lisa Wood, Executive Director of the Institute for Electric Innovation.  “Electric utility efficiency programs are helping customers use innovative technology to save energy, and these savings will accrue for many years to come.”

“America's natural gas utilities continue to increase their investment in natural gas efficiency programs as part of their commitment to improving the way we use energy,” said Dave McCurdy, AGA President and CEO. “Since 2011, AGA member companies have grown their projected spending on efficiency programs by 40 percent to nearly $1.5 billion in 2013. In 2012, these programs helped natural gas customers save an average of $117 in annual energy costs. These programs are essential to bringing home the value of natural gas for our economy, our environment and our energy security.”

Details available in the report. If you have questions, contact CEE either through the website or by e-mailing reports@cee1.org. Further analysis is available to CEE members on the CEE Forum.

About the Annual Industry Report

Energy efficiency program administrators working in various states and provinces are mandated and funded to achieve long lasting reductions in energy use for the United States and Canada. Each of these programs operates with different goals, regulation, cost structures, and programs. Nevertheless, these administrators work together at the Consortium for Energy Efficiency to accelerate market uptake of measurably efficient products and services.

Eight years ago, the Consortium for Energy Efficiency initiated a survey of members and other efficiency program administrators to discover the size and momentum of the industry by measuring program budgets and impacts. Since 2006, the survey has grown in scope, adding Canadian programs and standardizing the format in 2007, expanding the scope in 2008, and joining forces with major collaborators AGA and the Institute for Electric Innovation in 2009. By coordinating their mutual information needs, the three organizations have developed a more comprehensive reporting process with a lower burden on respondents.

About the Edison Foundation Institute for Electric Innovation

The Edison Foundation Institute for Electric Innovation focuses on advancing the adoption and application of new technologies that will strengthen and transform the power grid. The Institute’s members are the investor-owned electric utilities that represent about 70 percent of the US electric power industry. The membership is committed to an affordable, reliable, secure, and clean energy future.

About AGA

The American Gas Association, founded in 1918, represents more than 200 local energy companies that deliver clean natural gas throughout the United States. There are more than 71 million residential, commercial, and industrial natural gas customers in the US, of which 94 percent—over 68 million customers—receive their gas from AGA members. AGA is an advocate for natural gas utility companies and their customers and provides a broad range of programs and services for member natural gas utilities, pipelines, marketers, gatherers, international natural gas companies, and industry associates. Today natural gas meets more than one-fourth of the United States’ energy needs. To find out more, please visit: www.aga.org.

About CEE
CEE is an award-winning consortium of efficiency program administrators from the United States and Canada. Members work to unify program approaches across jurisdictions to increase the success of efficiency in markets. By joining forces at CEE, individual electric and gas efficiency programs are able to partner not only with each other, but also with other industries, trade associations, and government agencies. Working together, administrators leverage the effect of their ratepayer funding, exchange information on successful practices and, by doing so, achieve greater energy efficiency for the public good.