{"id":9613,"date":"2015-03-12T10:15:20","date_gmt":"2015-03-12T15:15:20","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=9613"},"modified":"2025-12-04T10:09:06","modified_gmt":"2025-12-04T15:09:06","slug":"illinois-steps-up-and-gives-energy-efficiency-the-respect-it-deserves","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2015\/03\/12\/illinois-steps-up-and-gives-energy-efficiency-the-respect-it-deserves\/","title":{"rendered":"Illinois Steps Up and Gives Energy Efficiency the Respect It Deserves"},"content":{"rendered":"

Energy efficiency may be the Rodney Dangerfield<\/a> of electricity policy. Compared to bulky power plants, it gets little respect.<\/p>\n

Part of the problem is efficiency is hard to visualize. A new refrigerator, even if it uses 50 percent less power, still looks like a refrigerator. And, insulation is buried within walls, whereas it\u2019s hard to miss a nuclear reactor or even a wind turbine.<\/p>\n

Another issue is power companies see efficiency as competition and want to limit its development. FirstEnergy, for instance, lobbied to freeze<\/a> Ohio\u2019s energy efficiency standards, abandoned its own conservation programs, and led efforts to do away with demand response<\/a>, an innovative energy management program that rewards people and businesses for conservation.<\/p>\n

So, the Illinois Power Agency\u2019s (IPA\u2019s) recent decision to put efficiency and generation on the same level provides some much needed respect.<\/p>\n

[Tweet “Illinois Steps Up and Gives #EnergyEfficiency the Respect It Deserves from @DickMunson”]<\/p>\n

The IPA is a rather unique government agency, tasked with procuring electricity on behalf of customers for Illinois\u2019 two main utilities, ComEd and Ameren Illinois. Beginning in 2014, EDF and the Citizens Utility Board<\/a> (CUB) began advocating for IPA to include energy efficiency in its proposed procurement plan. If such negawatts (a wonky term for the avoided electricity achieved through efficiency) were treated on par with generation resources, i.e. power plants, we argued that the costs of supplying electricity would fall, as would greenhouse-gas emissions.<\/p>\n

The IPA recently adopted our plan, calling it \u201cEnergy Efficiency as a Supply Resource<\/a>,\u201d and proposed conducting a separate auction to capture peak energy efficiency. Specifically, these are the negawatts that reduce the need for \u201cpeaker\u201d generation plants, which only run during the most high-demand (and expensive) times of the day and are typically the dirtiest to operate. Not surprisingly, the utilities and power companies objected. Thankfully, the Illinois Commerce Commission, the agency charged with regulating electricity in the state, upheld the IPA\u2019s approach. The agency is requiring the state\u2019s major utilities to include the specific price of electricity at all hours of the day, in order to calculate the true value of energy efficiency programs.<\/p>\n

Third-party energy efficiency programs, as part of their cost-benefit tests, will now be able to calculate how much efficiency trims energy use, when that shedding occurs, and the value of that avoided electricity. This change will be particularly beneficial to homes with smart thermostats, which can be programmed to temporarily reduce air conditioning during the hottest part of the day, and small businesses with energy-efficiency equipment that runs during high-cost, \u2018peak\u2019 hours.<\/p>\n

By giving energy efficiency the respect it deserves, Illinois will be able to take advantage of its ongoing deployment<\/a> of smart meters in order to advance more energy-saving innovations. Such procurement will help alleviate stress on the power grid, especially during \u2018peak\u2019 times, in order to reduce overall energy demand, cut pollution, and trim the price of electricity for Illinoisans.<\/p>\n","protected":false},"excerpt":{"rendered":"

Energy efficiency may be the Rodney Dangerfield of electricity policy. Compared to bulky power plants, it gets little respect. Part of the problem is efficiency is hard to visualize. A new refrigerator, even if it uses 50 percent less power, still looks like a refrigerator. And, insulation is buried within walls, whereas it\u2019s hard to …<\/p>\n","protected":false},"author":39893,"featured_media":9614,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[254,40302],"tags":[],"coauthors":[114108],"class_list":["post-9613","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy-efficiency","category-illinois"],"acf":[],"yoast_head":"\nIllinois Steps Up and Gives Energy Efficiency the Respect It Deserves - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2015\/03\/12\/illinois-steps-up-and-gives-energy-efficiency-the-respect-it-deserves\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Illinois Steps Up and Gives Energy Efficiency the Respect It Deserves - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"Energy efficiency may be the Rodney Dangerfield of electricity policy. 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