As states, utilities and consumers seek solutions to reduce both the demand for energy and its corresponding impact on the environment and energy bills, they are increasingly turning to energy efficiency and demand response programs to achieve these goals. With a majority of states now overseeing the administration of nearly $4 billion worth of energy efficiency programs annually and some imposing penalties on utilities for failing to achieve state-mandated goals, utilities are confronting a variety of new legal issues and risks within a rapidly evolving field.
This article, authored by Sidley associate Mark R. Johnson, provides an overview of energy efficiency programs in the United States and a discussion of the regulatory issues utilities are encountering as they develop and seek regulatory approval of energy efficiency plans.
© Bloomberg Finance L.P. 2009. Originally published by Bloomberg Finance L.P. Reprinted by permission.