Energy Efficiency: Six Keys to Success for Utilities

Author:

CSC

Energy efficiency is an essential component of most utilities’ expansion plans, financial performance and regulatory strategy. In many states, utilities have witnessed energy efficiency initiatives delay the need for power plants or power contracts, transmission lines, and distribution infrastructure. Utilities are also realizing the financial benefit of shareholder incentive plans tied to strong energy efficiency performance.

However, sooner or later questions are raised about the department’s performance, staffing levels and budget growth — either internally or by regulatory staff. Annual energy efficiency budgets for large utilities can range from $50 – $350 million, and in many cases they are rising rapidly. In jurisdictions that have only recently required utilities to begin energy efficiency programs, budgets may be growing 20 – 50 percent per year as companies strive to meet aggressive targets.

The size, growth and importance of energy efficiency portfolios demand a fresh perspective. The time has come to organize and manage energy efficiency as a full-fledged business unit within the utility. This means a greater focus on operations management, which has largely been overlooked — aside from occasional questions about outsourcing rebate processing, slowing the growth in the employee base or finding better contractors.

Though our Global Utilities Division, we focus on improving energy efficiency operations. Our emphasis on the operational side of energy efficiency is based on six keys to success that every utility executive with energy efficiency responsibility should understand, as well as their management team.