July 29, 2009

Statement by Lisa Wood, Executive Director of the Institute for Electric Efficiency, regarding today’s release of the McKinsey report, “Unlocking Energy Efficiency in the U.S. Economy.”

Download the report here.

“The McKinsey study offers a thorough examination of ramping up our nation’s energy efficiency efforts, highlighting what energy companies and their customers have accomplished thus far, but -- more importantly -- focusing on the potential for future efforts.  The study rightly shows that realizing this potential will depend upon overcoming what it calls ‘significant and persistent barriers,’ and that a concerted, nationwide effort will be needed.

“We agree with the report’s conclusion that moving past these barriers calls for increased customer information and incentives, improved and strongly enforced efficiency codes and standards, and more effective and innovative efficiency program design and execution. All of these factors are critical and are most effectively utilized together for maximum impact.

“At the same time, as the report indicates, successfully and meaningfully increasing our efficiency footprint will require a strong national commitment from all sectors of the energy industry as well as from federal agencies, state regulators and -- equally -- energy customers.

“As the DOE Energy Information Administration data indicate, the electric utility sector has made significant progress in ramping up efficiency programs during the past few years, increasing by 38 percent the energy saved by these programs between 2003 and 2007.  At the same time, state regulatory paradigms have shifted significantly across the nation by aligning utility incentives with investments in energy efficiency via decoupling, performance incentives, and other mechanisms that level the playing field between ‘demand-side’ and ‘supply-side’ resources. 

“Electric companies value efficiency as an important resource in meeting our customers’ energy needs and helping our customers manage their energy use, and we are committed to helping to develop and grow this resource in the years to come.”