Cost of Saving Electricity Through Efficiency Programs Funded by Customers of Publicly Owned Utilities: 2012–2017

This report finds that energy efficiency programs for customers of publicly owned utilities saved electricity at an average cost of 2.4 cents per kilowatt-hour (kWh) from 2012 to 2017. 

Utilities use such cost performance metrics to assess effectiveness of efficiency program portfolios, determine what programs to offer customers, and, more broadly, ensure electricity system reliability at the most affordable cost as part of electric utility resource adequacy planning and resource procurement processes.

The study analyzed efficiency program data reported by 111 program administrators for 219 publicly owned utilities in 14 states — about 90 percent of the municipal utilities and public utility districts that report the data to the Energy Information Administration (EIA). The data represent 88 percent of all spending and 75 percent of all savings that publicly owned utilities reported to EIA in those years. Berkeley Lab used data from several sources, including data provided directly by American Public Power Association members, publicly available annual reports and regional data collections.