Dive Brief:
- Maryland's consumer advocate agency is recommending the state set energy savings targets for its utilities. The Office of the People's Counsel (OPC) filed comments recommending the state mandate a 2% annual decrease in residential usage, relative to 2012 levels.
- Maryland utilities have met a 15% energy use reduction target set in a 2008 law and are now slowing down on their efficiency efforts, according to the OPC.
- The state's four investor owned utilities and one co-op filed in September plans for how they intend to reduce energy demand through 2017, but a new analysis finds the growth of those programs is declining and investment would halt at 2013 levels.
Dive Insight:
Maryland's consumer advocate believes the state needs to adopt specific efficiency targets for utilities. The OPC points to analysis it asked consultant Vermont Energy Investment Corp. (VEIC) to complete, which reveals utility investment in reducing energy usage had stagnated.
Baltimore Gas & Electric, Pepco, Delmarva Power, Potomac Electric and Southern Maryland Electric Cooperative filed their efficiency plans last month, and OPC said the strategies are cause for concern.
"Without a clear goal established to take the place of the 2008 legislative goals, there is nothing compelling the utilities to expand their efforts," the advocate said.
OPC filed its consultant's analysis, recommending state regulators consider directing the utilities to enhance their proposed 2015-2017 portfolios to achieve an average annual net savings rate of 2% of 2012 residential retail sales. According to VEIC, a 2% target would result in cumulative annual savings of 14% of 2012 residential retail sales by 2017.
