The Utah Story: Rapid Growth of Utility Demand-Side Management Programs in the Intermountain West

摘要

Two investor-owned utilities-Rocky Mountain Power (RMP), a division of PacifiCorp,rnand Questar Gas Company (QGC)-provide most of the electricity and natural gas consumed inrnUtah. Both utilities have greatly scaled up their demand-side management (DSM) programs inrnrecent years. RMP spent about 4 percent and QGC spent about 6 percent of its retail salesrnrevenue on DSM programs in 2009 (note QGC implements programs for its full service gasrncustomers only). Both utilities saved more than 1 percent of their retail energy sales from DSMrnprograms implemented in 2009 alone.rnThis paper reports on the growth in the level of energy savings and peak demandrnreduction being achieved, the funding for and key elements of electric and natural gas utilitysponsoredrnDSM programs in Utah. It describes the drivers for DSM as well as the policy andrnregulatory framework in Utah that has enabled the programs to grow. These policies includernconvenient cost recovery, decoupling of sales volume and fixed cost recovery in the case of thernQGC, and integrated resource planning. The paper also discusses how the two utilities havernworked together, in conjunction with the state of Utah to implement some programs in arncoordinated and synergistic manner. Finally, it describes the challenges that the two utilities arernfacing as they try to maintain their program budgets and high levels of energy savings goingrnforward, and how these challenges are being addressed.