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Concentration of CO2 in the Atmosphere

What will Massachusetts’ new efficiency targets mean for future policy?

By Maggie Molina, Senior Director for Policy

Massachusetts’ new three-year energy efficiency plan includes aggressive energy-savings targets for utilities. The plan, approved Tuesday by the state’s Energy Efficiency Advisory Council and filed for approval with utility regulators, is estimated to cut greenhouse gas emissions and achieve $8.6 billion in customer benefits.

Massachusetts is one of 27 states that have an energy efficiency resource standard (EERS). ACEEE has found that EERS policies, which set specific energy-saving goals, are the most successful way to drive large energy efficiency gains in the utility sector, especially when aligned with utility business models to support efficiency, including performance-based incentives and revenue decoupling.

While utility regulators in Massachusetts still need to formally rule on the targets, the plan represents months of stakeholder input. The plan helps show how the next generation of EERS policies is evolving to reflect major changes in the energy system and in climate policy.

Here are five ways the proposed plan indicates a broad evolution in utility efficiency targets…

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