Electric Energy Efficiency Savings Grows Significantly in the U.S., New Report Shows

The findings come from a new report published by the Institute for Electric Efficiency (IEE).

WASHINGTON (January 3, 2012)-Electric energy efficiency savings are on a
growth path in the U.S., and electric utilities are a major force behind the
trend. The findings come from a new report published by the Institute for
Electric Efficiency (IEE).

Overall, the IEE report, Summary of Ratepayer-Funded Electric Efficiency
Impacts, Budgets and Expenditures (2010-2011), found that ratepayer-funded
energy efficiency and demand response programs in the U.S. saved enough
electricity to power almost 10 million homes in 2010, representing
approximately 112 million megawatt-hours of electricity (MWh). These savings
signify an increase of 21 percent over 2009 levels, or nearly 20 million
MWh. IEE projects that total electric savings from these energy-efficiency
programs will continue double digit increases in the future.

Lisa Wood, IEE Executive Director, said, "This steady increase in
electricity savings is really impressive. And the growth in electric utility
expenditures for energy efficiency is the major reason behind it.

"Efficiency expenditures in 2010 totaled $4.8 billion, representing an
increase of 28 percent over the prior year. Electric utilities accounted for
88 percent of all ratepayer-funded electric efficiency expenditures in 2010.
In addition, ratepayer-funded electric efficiency budgets reached a total of
$6.8 billion in 2011."

Ed Wisniewski, Executive Director of CEE, commented that, "Over the four
years since 2007, savings impacts have grown 80 percent, justifying the ramp
up of investment in efficiency that's also occurred over this time period.
This scale affords a unique opportunity to address the challenges ahead and
reap the tremendous savings that are still available cost-effectively."

Ralph Cavanagh, Energy Program Co-Director for the Natural Resources Defense
Council, said, "NRDC joins the Institute in celebrating this strong evidence
of energy efficiency's continued momentum as the nation's fastest, cheapest
and cleanest source of additional electricity supply."

In looking at the U.S. Census regions, the IEE report found that the Midwest
had the largest percent increase in electric efficiency savings between 2009
and 2010 (38.9 percent), followed by the Northeast (38.5 percent), and the
South (19.8 percent) and the West (5.3 percent).

The IEE report also found that relative to their 2010 budgets, 37 states
increased their 2011 energy efficiency budgets. And the overall increase in
2011 budgets relative to 2010 budgets was a robust 25 percent.

Wood continued, "Given that half the states now have energy efficiency
resource standards, and that several of these standards have scheduled
increases, we believe that total U.S. ratepayer-funded budgets for electric
efficiency will easily exceed $12 billion by 2020."

Wisniewski added, "CEE members see great value in working together to
maintain and enhance credible and reliable efficiency program information as
evidenced by their 97 percent response rate, and value the opportunity to
work with IEE."

Report Background
In mid-2011, the Consortium for Energy Efficiency (CEE), in coordination
with IEE and the American Gas Association (AGA), collected industry-wide
data on ratepayer-funded energy impacts, expenditures, and budgets for
energy efficiency programs from virtually all of the gas and electric
utilities in the United States and many in Canada, as well as other energy
efficiency administrators. The new IEE report is focused on the U.S.
electric efficiency results based on information from 195 organizations-172
electric and combined utilities, 10 non-utility energy efficiency
administrators, and 13 organizations that declined to release their data at
the organizational level. For more information about the Consortium for
Energy Efficiency, please visit www.cee1.org.

The Institute for Electric Efficiency (IEE) represents about 70 percent of
the U.S. electric power industry. The Institute is a program of the Edison
Foundation, a 501(c) (3) charitable organization, and is governed by a
Management Committee of electric industry Chief Executive Officers. IEE has
a permanent Advisory Committee comprising representatives from the
efficiency community, federal and state government agencies, and other

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