April 5, 2013

CEE Annual Industry report released; expenditures reach $7.6 billion

Boston, MA—The Consortium for Energy Efficiency (CEE) today releases its 2012 Annual Industry Report, painting the most complete picture of energy efficiency and demand response program activity available from a single source. Based on a survey collecting budget, expenditure, and impact data, the report covers both gas and electric demand side management in the United States and Canada. Expenditures and budgets continue to climb, with commensurate growth in savings.

US and Canadian DSM Expenditures

Total expenditures for 2011 reached $7.6 billion, growing 17 percent from $6.5 billion in 2010. Budgets in 2012 measured $9.4 billion. Since 2007, US and Canadian electric and gas efficiency program budgets have grown from $3.7 billion, showing continued rapid increase despite a weak economy. These programs resulted in avoiding the emission of 30 million metric tons of COby saving 40,000 GWh of electricity and 360 million therms of gas in 2011.

"Even though CEE members operate under varied regulatory circumstances, they all have in common a primary goal of benefiting customers and society through energy efficiency. Increasingly, they are asked to serve a growing number of additional objectives with these programs, such as integrating load management and providing actionable energy information, explains Ed Wisniewski, executive director of CEE. "The trends depicted in the Annual Industry Report show members and others the growing financial commitments programs are devoting to delivering these benefits."

Since 2008, electric expenditures have increased 69 percent. Gas expenditures topped one billion dollars for the first time, up from $914 million in 2010 to $1.1 billion in 2011. Eighty percent of the 2011 expenditures, or $6.1 billion, were directed by CEE members.

Working with major contributors AGA (American Gas Association) and IEE, an Institute of the Edison Foundation, CEE obtained data from 309 of the larger utility and nonutility organizations operating efficiency programs in 47 states and seven Canadian provinces. For the first time since starting this survey, the response rate did not increase significantly as CEE, AGA, and IEE have been able to reach the overwhelming majority of administrators in both 2011 and 2012.

“US electric utilities continue to recognize the value that energy efficiency provides to their customers and spent $5.7 billion in 2011, a 19 percent increase from 2010 levels. With both turnkey and in-depth efficiency solutions to fit the needs of any customer, we expect electric utilities to continue to deliver strong and growing energy savings to households and businesses for many years to come,” said Lisa Wood, Executive Director of IEE.

"America's natural gas utilities are committed to improving the way we use energy," said Dave McCurdy, AGA President and CEO. "Throughout the country, our energy efficiency programs are providing homes and businesses with incentives, services and expertise to help them upgrade to high efficiency natural gas appliances, weatherize buildings, and optimize energy management throughout their system. These programs help ensure that natural gas customers are getting the best possible value for their energy use, which helps our environment, improves energy security, and delivers big savings."

You can download the report or view budget and expenditure data by state or province. If you have questions or would like to request the charts from the report for a presentation, 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 in 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.

Seven 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 AGA and IEE in 2009. By coordinating their mutual information needs, the three organizations have developed a more comprehensive reporting process with a lower burden on respondents.

AGA The American Gas Association, founded in 1918, represents more than 200 local energy companies that deliver safe, reliable, and clean natural gas throughout the United States. There are more than 71 million residential, commercial, and industrial natural gas customers in the United States, of which 92 percent—more than 65 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 pipelines, marketers, gatherers, international natural gas companies, and industry associates. To find out more, please visit www.aga.org

IEE IEE is an Institute of the Edison Foundation focused on advancing the adoption of innovative and efficient technologies among electric utilities and their technology partners that will transform the power grid. IEE promotes the sharing of information, ideas, and experiences among regulators, policymakers, technology companies, thought leaders, and the electric power industry. IEE also identifies policies that support the business case for adoption of cost-effective technologies. IEE members are committed to an affordable, reliable, secure, and clean energy future. IEE is governed by a Management Committee of 23 electric industry chief executive officers. IEE members are the investor-owned utilities who represent about 70 percent of the US electric power industry. IEE has a permanent Advisory Committee of leaders from the regulatory community, federal and state government agencies, and other informed stakeholders. IEE has a Strategy Committee of senior electric industry executives that identifies strategies and projects for IEE. IEE also has 22 smart grid technology company partners who share information about new technologies and practices and support IEE work. For more information, please visit www.edisonfoundation.net/iee.

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.