Products & Services

Energy Efficiency Update

Energy efficiency is an integral part of our transition to a low-carbon future. We believe the regulatory model must change to encourage utilities to sell less – not more – electricity.

Most utilities earn returns on capital only when they build new power plants. Under our save-a-watt model for energy efficiency, Duke Energy earns a return on the savings that are realized by not having to build and operate a plant. This is called “avoided cost.” If our energy efficiency investments don’t save energy – which will be verified by an independent third party every year – we don’t get paid. Save-a-watt creates the incentives we need to aggressively pursue energy efficiency as an alternative to investing in new plants.

The Public Utilities Commission of Ohio approved save-a-watt in December 2008. In early 2009, South Carolina regulators rejected our save-a-watt proposal but expressed a willingness to expedite their review of a revised energy efficiency plan. North Carolina regulators requested additional information on our save-a-watt filing, but they also approved our proposed energy efficiency programs. Regulatory decisions in Indiana and Kentucky are currently pending.

We believe regulatory approaches like save-a-watt that treat investments in energy efficiency like investments in power plants are a winning model for a low-carbon economy. They help customers conserve electricity, save money and improve the environment – without sacrificing convenience, comfort or reliability.