Electric Efficiency Standard

Note: In March 2014, S.B. 340 became law, leading to the end of Indiana's Electric Efficiency Standard. Under S.B. 340, the Indiana Utility Regulatory Commission may not "extend, renew, or require the establishment of an efficiency program" under the demand-side management program order issued in December 2009, and beginning in January 2015 they cannot require utilities to meet a goal or target this order specified. In May of 2015, SEA 412 was signed into law which allows utilities to set their own voluntary targets and control their own efficiency programs.

In December 2009, the Indiana Utility Regulatory Commission's (IURC) ordered utilities to establish demand-side management (DSM) electric savings goals leading to 2.0% reduction of electricity sales by the year 2019. Utilities under IURC jurisdiction must file three-year DSM plans, beginning in July of 2010, which indicate progress and plans for reaching the annual incremental electricity savings targets.

Electricity Sales Reduction

The IURC established an electricity savings goal of incremental annual sales reduction over the previous three year average electricity sales. Each year's benchmark is set by the preceding three year average electricity consumption, beginning July 1 of that year. After obtaining 2.0% reduction by the year 2019, the electricity sales reduction percentage holds at 2.0% for every year thereafter.

Calendar Year	Electric Sales Reduction
2010	0.3%
2011	0.5%
2012	0.7%
2013	0.9%
2014	1.1%
2015	1.3%
2016	1.5%
2017	1.7%
2018	1.9%
2019	2.0%

Non-Compliance

Demand-side management plans shall be filed on July 1 in 2010, 2013, 2016, and 2019, with annual supplemental updates in the interim periods. Utilities that do not meet the electricity reduction goals must demonstrate to the IURC how they plan to alter or add programs to increase savings.

DSM Programs

In July 2011, IURC selected a third party administrator (July 2011 Order) to administer, evaluate, measure, and verify the core DSM programs. Separately, the 2009 ruling identified five core programs that utilities must provide. Programs are funded using a DSM and Energy Efficiency Program Cost Rider. Utilities are free to develop and administer other DSM programs, but must provide the five core programs:

• Residential lighting program
• Home energy audit program
• Low income weatherization program
• Energy efficient schools program
• Commercial and Industrial Program
  

In 2012, utilities, the Indiana Office of Utility Consumer Counselor, and the Citizens Action Coalition collaborated to form Energizing Indiana in order to administer the core efficiency programs for participating utilities. Some utilities administer their own efficiency programs either in addition to or separate from the Energizing Indiana programs.