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Download MD-PIRG-EE-scorecard-web-version.pdf - Frontier Group

Download MD-PIRG-EE-scorecard-web-version.pdf - Frontier Group

Figure ES-2. Peak Demand

Figure ES-2. Peak Demand Reductions in 2015 if Utilities Continue to AchieveReductions at Current Rate versus EmPOWER Maryland Goals1600PeakDe emandReduction(MW)1400120010008006004002002015EmPOWERMarylandPeakDemandReductionGoalsMarylandPIRGEstimationofUtilityProgressby20150BGE PEPCO DelmarvaPowerAlleghenyPowerSMECOEmPOWERMarylandUtilities* Calculations include progress to date from program launch and assumes that utilitiesachieve the same quarterly savings through the end of 2015 as in the fourth quarter of2010. It also assumes that state and federal programs achieve at least half of the energysavings and peak demand reduction goals for which utilities are not responsible underEmPOWER Maryland.Based on progress made by utilitiesin 2009 and 2010, Maryland is likely tomiss the 2015 energy savings targetsestablished by EmPOWER Marylandby as much as 52 percent.• If utility programs achieve the samequarterly savings from 2011 to 2015 asthey did in the final quarter of 2010,utilities will achieve only 46 percent oftheir EmPOWER Maryland electricitysavings targets and 72 percent oftheir peak demand reduction goals in2015.• Non-utility efforts to meet Em-POWER Maryland targets haveaccomplished relatively little; the bulkof electricity savings in the state so farhave been achieved by utilities.• Even if state and federal programsmanage to achieve half of the nonutilityshare of EmPOWER Marylandtargets—an optimistic assumption—Maryland would still fall about 52percent short of overall targets.Executive Summary

Actions by the Public Service Commission(PSC) have impaired progresstoward meeting the goals of EmPOWERMaryland.The PSC has delayed implementationof EmPOWER Maryland, preventingdelivery of meaningful savings early inthe program.• Due to its unclear program guidelinesand drawn-out approval process,the PSC delayed program launch formost utility programs for almost ayear after EmPOWER Maryland wasenacted.• The PSC failed to ensure that utilitieslaunched efficiency programs ina timely manner after receiving PSCapproval.The PSC has not created a system fortimely evaluation of utility programs,resulting in planning problems.• The PSC has yet to make manyimportant decisions about programevaluation, which affects the PSC’sability to discern where utilities aresucceeding or failing.The Public Service Commission isrestrictive in the types of programs itallows utilities to pursue, leaving manyefficiency opportunities untapped.• The PSC has set an unreasonablestandard for “cost-effectiveness” andapplies it inconsistently, hinderingutilities’ ability to design effectiveprograms.o The PSC does not consider socialand environmental benefits ofenergy efficiency legitimate criteriafor program approval.o The PSC has rejected programsthat pass nationally-recognizedcost-effectiveness tests, leavingutilities without a clear indicationof how to design programs to gainPSC approval.• The PSC has been hesitant to approveefficiency programs where benefits arenot distributed evenly among all ratepayers,which leaves many legitimateefficiency programs on the table.The PSC has not held utilities accountablefor their electricity savingsshortfalls.• The PSC has approved utility plansthat will not meet EmPOWER Marylandtargets and has failed to imposeconsequences on utilities when theydo not hit interim goals.The state and the PSC must improveEmPOWER Maryland implementationand support additional efficiencyprograms.The PSC must do more to ensurethat utilities meet their share of theEmPOWER Maryland goals. The PSCshould:1) Recognize all the benefits ofenergy efficiency – The PublicService Commission should followthe lead of states that have adopteda broader cost-effectiveness test tocapture benefits of energy efficiencythat include avoided costs of buildingtransmission lines and power plants,as well as public health benefits ofusing less energy.2) Enforce timelines and targets –Utility failure to meet electricity savingstargets or reporting deadlines setby the PSC should have clear consequencesfor the utility.Falling Behind on Energy Efficiency

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