Message to FERC: Energy Efficiency Belongs in Wholesale Markets

Over 200 groups and individuals sign on to E4TheFuture's comments as FERC begins addressing participation barriers

Immediate Release

February 16, 2017

Message to FERC: Energy Efficiency Belongs in Wholesale Markets
Over 200 groups and individuals sign on to E4TheFuture's comments
As FERC begins addressing participation barriers

Framingham, Mass., February 16 - Two hundred and twelve organizations and individuals have signed onto E4TheFuture's comments requesting that the Federal Energy Regulatory Commission (FERC) explicitly include energy efficiency in its definition of Distributed Energy Resources (DER).

E4TheFuture applauds the Commission's long-term objective of creating fair, competitive and efficient wholesale electric markets. Correctly defining DER is a key element in this effort.

For the first time in FERC proceedings, a proposed definition of DER was published, as part of the Notice of Proposed Rulemaking (NOPR) regarding "Electric Storage and DER Participation in Regions with Organized Wholesale Electric Markets." That document provides examples of distributed energy resources, including energy storage and electric vehicles, but neglects to list energy efficiency. As part of the public review process, E4TheFuture filed comments asking FERC to remedy this omission.

Signatories to the comments included national and regional organizations from across the country, including the Alliance to Save Energy, the American Council for an Energy-Efficient Economy, the National Association of Energy Service Companies, the Building Performance Institute, the Home Performance Coalition, the Midwest Energy Efficiency Alliance, the New England Clean Energy Council, the California Energy Efficiency Industry Council, Northeast Energy Efficiency Partnerships, and the Southeast Energy Efficiency Alliance. Also signing the request: more than 120 companies nationwide that provide energy efficiency services.

"Energy efficiency should always be included as a distributed energy resource," said E4TheFuture's National Policy Director, Pat Stanton. "It's especially important in the context of this rulemaking — which seeks to improve access to and participation in wholesale energy markets — that energy efficiency be recognized and compensated for the services it provides."

Energy efficiency is a proven, zero-emitting energy resource. It is the least-cost option for states, and supplies affordable, reliable electricity to residents and businesses. Efficiency has already demonstrated its ability to successfully participate in wholesale markets, and substantial potential value can be captured if revised market rules for DER facilitate greater energy efficiency participation in all regional wholesale markets. Energy efficiency can be targeted toward location, addressing the specific needs of geographic areas. It can also focus on specific technologies, such as lighting or HVAC, for peak reduction.

In a second, expanded set of comments, E4TheFuture also advocated for Independent System Operators and Regional Transmission Organizations to more consistently incorporate DER stakeholders' input into their rulemaking processes for wholesale markets. Twenty-seven people in seven states, representing all regions of the U.S. and the District of Columbia, signed on to these comments.

FERC's actions constitute a first step toward addressing barriers and facilitating wholesale market participation. Energy efficiency is already a valuable resource for some wholesale markets; explicit recognition will improve reliability and increase benefits to electricity customers across the country.


About E4TheFuture
E4TheFuture is a nonprofit organization advancing clean, efficient energy solutions for residential customers. Its endowment comes from Conservation Services Group (CSG), whose operating programs were acquired in 2015 by CLEAResult. Advocating for smart policy with an emphasis on residential solutions is central to E4TheFuture's strategy. Visit e4thefuture.org to learn more.


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