Duke Energy Settles with Environmental Groups on Changes to Save-A Watt Program

Environmental organizations reached an agreement with Duke Energy Carolinas and North Carolina Utilities Commission Public Staff on Duke Energy’s "Save-A-Watt" program.  Under this agreement, Duke Energy agrees to meet an aggressive energy savings target and cap earnings from energy efficiency programs at levels that protect customers’ interests in fair rates while still encouraging strong performance.  On June 12, all parties to the agreement--Environmental Defense Fund, the Natural Resources Defense Council, Southern Alliance for Clean Energy, the Southern Environmental Law Center, North Carolina Utilities Commission Public Staff, and Duke Energy Carolinas--jointly filed the settlement agreement with the North Carolina Utilities Commission for approval.

The agreement sets a target to reduce energy demand by almost 2 percent within four years, with the potential to achieve energy savings of over 8 percent within 10 years. According to The Southern Environmental Law Center, if Duke Energy achieves its target, the cumulative energy savings impact will reach almost 6,800 gigawatt-hours by 2020, which is slightly more than the annual output of an 800-megawatt power plant like Cliffside.

Michael Regan, southeast regional air-policy expert for the Environmental Defense Fund told the Charlotte Business Journal that the environmental groups involved want to support utilities in their efforts to provide energy-efficiency programs and believe that the settlement makes the program better for customers, the environment and for Duke.

The environmental organizations maintain that energy efficiency is the cleanest, cheapest way to defer or avoid the need for expensive, polluting new power plants, protecting the climate, public health and customers’ wallets. The agreement provides Duke Energy with a strong incentive to achieve energy savings while ensuring that customers benefit financially through low-cost energy efficiency measures rather than paying for expensive new power plants.