Post-2015 Maryland Energy Efficiency Goals

Summary

 In July 2015, the Public Service Commission (PSC) in its Order 87082 established energy efficiency goals for the State. Previous state mandated energy efficiency program- EmPOWER Maryland Act is set to expire at the end of 2015, after which the PSC set goals is going to take effect. 

The PSC electric energy efficiency goal is set at 2% of the utility's weather normalized gross retail sales. The utilities are required to file forecasted gross electric savings for 2015-2017 program year with 2013 baseline before September 2015. The goal for the utilities in 2016 is to achieve the forecasted savings approved in the Commission’s December order, and the utilities’ goals for 2017 are 0.2% higher as a percentage of retail sales compared to the savings forecasted in 2016. The goal would increase by 0.2% per year until the utility reaches the annual incremental gross energy savings of 2% per year. The official numbers will be included in the Utilities’ September 1, 2015 filings.

For example, if a utility states that it will achieve the equivalent savings of 1.3% of its 2013 retail sales baseline in 2016, then the utility will have to “ramp-up” its programs in 2017 by 0.2%, so that the utility achieves the equivalent of 1.5% savings in 2017. This ramp-up of 0.2% continues each year until the utility achieves the equivalent of 2.0% of its retail sales—at which time the utility will have to continue achieving the equivalent savings of 2.0% of its retail sales.

The order also provides framework to establish energy efficiency goal for natural gas utilities, and for programs targeting limited-income households. The working groups related to the natural gas and limited-income household programs are required to develop and recommend energy savings goals before February 2016.