Duke Energy catching up on energy-efficiency investments

Duke Energy catching up on energy-efficiency investments

October 31, 2013 | By Barbara Vergetis Lundin

Duke Energy has received approval from the North Carolina Utilities Commission (NCUC) for a new energy-efficiency incentive mechanism.

The incentive uses a shared-savings model, which allows customers to share in the money saved by reducing energy waste. Duke Energy customers will share in these financial gains with the utility. This new reward-based program will build upon Duke Energy's energy-efficiency successes over the past four years, and will put the company in a position to grow its energy-efficiency performance and set a strong example as a leader in energy savings in the Southeast.

"Rewarding good behavior is the best way to encourage a company like Duke Energy to dig in and invest in energy savings programs that cut waste [and] save money…," said Kelly Martin, senior campaign representative with Sierra Club in North Carolina.

Duke Energy and the NCUC previously used the Save-A-Watt program to reward the utility for investing in energy-efficiency programs. Under this program, Duke Energy achieved savings of 0.65 percent of all retail sales in North Carolina. Leaders in energy efficiency across the nation are achieving more than 2 percent savings; more than 14 states are saving at least 1 percent of retail sales a year. Through this new incentive, Duke Energy will receive additional incentives for meeting a more aggressive goal of 1 percent energy savings.

"Duke Energy may be the nation's largest utility, but it has lagged far behind the nation's leaders in energy savings investments," said Natalie Mims, Energy Efficiency Director for Southern Alliance for Clean Energy. "The new financial incentive re-confirms North Carolina's support for energy efficiency, and provides an opportunity for Duke Energy to make the Carolinas the most efficient states in the Southeast."