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 rolled out its “Save-a-Watt” program. In its initial form, the plan took a substantial bite out of ratepayers’ wallets but yielded little in the way of energy conservation or cuts in pollution.

What We Recommended

SELC called for regulators to require Duke to develop a more aggressive set of programs that would result in real energy savings. SELC also called for an overhaul of the financial package so that Duke would be rewarded for genuine energy savings, and not just for shifting the timing of energy use. 

A Better Plan Achieved

In June 2009, SELC and its clients reached an agreement with Duke Energy Carolinas and North Carolina Utilities Commission Public Staff under which the company agreed 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. In December 2009, the North Carolina Utilities Commission issued a notice of its decision to approve the settlement.