Duke Energy’s ‘Save-a-Watt’ Program (NC, SC)

In 2007, as a condition for permission to build a new coal-fired generation unit, the North Carolina Utilities Commission ordered Duke Energy to devote 1 percent of its annual electricity revenues to increasing energy efficiency and reducing power demand.

In response, the company has rolled out its “Save-a-Watt” program, a plan that would take a substantial bite out of ratepayers’ wallets but yield little in the way of energy conservation or cuts in pollution. SELC is calling for regulators to require Duke to develop a more aggressive set of programs that would result in real energy savings.

Inherent Problems in the Save-a-Watt Plan

• The program gives Duke a huge financial bonus for shifting power demand from peak to off-peak hours. This would do little to curb energy consumption, lower electricity bills, or decrease power plant emissions.
• The plan pays short shrift to energy conservation and would ultimately produce only 120 megawatts in energy savings per year. Compare that to the 800 megawatts to be generated by a single coal-fired unit proposed for Duke’s Cliffside power plant. 
• Customers would pay 90 percent of the avoided cost of electricity they don’t use, which Duke is touting as a 10 percent savings for consumers.
• The company has rigged the system to make high-achieving energy conservation programs appear less cost-effective than they really are.

What We Are Recommending

Utility regulators must require Duke to develop a more comprehensive portfolio of energy efficiency programs that produce significant reductions in electricity use. They should also overhaul the financial package so that Duke is rewarded for genuine energy savings, and not just for shifting the timing of energy use.