The New York State Public Service Commission, which regulates utilities, will offer almost $27 million to electric utilities to encourage them to set up energy efficiency programs.
The Commission wants to see utilities create programs that help customers use less energy and also prevent anticipated increases in electricity bills. Looking at current trends, the Commission expects that energy use in 2015 will be 11 percent higher than today.
Utilities will be awarded funds only if they meet reduction goals. The Commission has identified potential reductions for each service territory in the state along with maximum incentives totaling $26.96 million. The Commission plans to start out with lower reduction expectations, and increase them as utilities gain more experience.
Overall, the Commission hopes to create an annual reduction of 693,951 megawatt hours a year, which makes up the Commission's portion of the state's goal of cutting energy use by 15 percent by 2015.
Additionally, the Commission will make an extra $5 million available for meeting electricity demand reductions in New York City, although the reduction targets have not been set.
"Incentives are valuable in securing a long-term commitment by utilities to achieving efficiency goals," said Commission Chairman Garry Brown.
The program applies only to electrical utilities. The Commission negotiates incentives for gas utilities on a case-by-case basis. |
