State Energy Efficiency Policy Database

Both natural gas and electric utilities in Indiana operate demand-side management and energy efficiency programs. These utilities include Duke Energy, Vectren, Indiana Michigan Power Company, Northern Indiana Public Service Company, Northern Indiana Fuel and Light, and Kokomo Gas and Fuel. While some of these programs have existed for over a decade, they have been relatively small. According to the Indiana Utility Regulatory Commission, Indiana electric utilities reported gross efficiency program savings of 79,366 MWh in 2010, approximately double the savings reported in 2009.  Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.

Although Indiana has not taken a strong interest in energy efficiency in the past, this began to change in 2007. Utilities have proposed expanding their programs and setting more ambitious targets. This has led to a series of new dockets at the Indiana Utility Regulatory Commission (IURC).

In 2007, the IURC opened a docket concerning Duke Energy’s expanded energy efficiency program, known as the “Save-A-Watt” program, however, Duke withdrew their proposal and the docket is now closed.   

A Commission order (in Case 42693) called on all electric utilities to provide a core set of statewide programs. It was implemented starting January 2, 2012. Phase II of the order requires regulated utilities to achieve energy savings targets. Utilities must contract with a single independent third party administrator for the purpose of jointly administering and implementing the Core Programs.  All five investor-owned utilities have had their initial set of three year plans approved by the Commission.  The docket numbers including the specifics  include 43912, 43959, 43955, 43938 and 43960. Non-jurisdictional utilities, such as cooperatives and municipal utilities, were invited to participate in the statewide Core program.  Almost all REMCs and Municipal utilities opted out of commission jurisdiction well before the Phase II final order.

Indiana natural gas utilities reported in 2007 that the Indiana Utility Regulatory Commission approved a set of residential programs that year. The scope of these programs was not clearly stated. In general, natural gas programs in Indiana have been small, limited, and often voluntary.

Links:

• Indiana Office of Energy & Defense Development, Hoosier Homegrown Energy: Indiana's Strategic Energy Plan
• Database of State Incentives for Renewables and Efficiency
• http://www.energizingindiana.com/

Indiana’s Commission ordered all jurisdictional electric utilities to begin submitting three-year DSM plans in July 2010 indicating their proposals and projected progress in meeting annual savings goals outlined by the Commission. The goals begin at 0.3% annual savings in 2010, increasing to 1.1% in 2014, and leveling at 2% in 2019. Load management and direct load control initiatives, including peak-shaving, which result in net-energy savings will be counted towards the goal. Achievement of DSM goals will be measured through an independent third-party evaluation and will be based on a reduction of electric sales rather than peak electric demand.  Utilities that do not meet the goals must demonstrate to the Commission how they plan to alter or add programs in to increase savings. In 2013, the Commission will critically review the utility DSM filings to ensure a solid foundation is in place to allow utilities to meet energy savings objectives.

The decision also outlines a portfolio of core programs, now called Energizing Indiana, offered by all affected utilities. The statewide approach offers consumers a uniform set of energy efficiency programs, using coordinated marketing, outreach, and consumer education strategies. The programs include: residential lighting, home energy audits, low-income weatherization, energy-efficient schools, and commercial and industrial. Energizing Indiana is administered by a single independent, third-party entity, which is contracted by all of the utilities. Utilities are able to oversee additional programs. Programs will be evaluated through a consistent evaluation framework developed by a third-party evaluator.

Indiana Administrative Code provides guidelines for demand-side recovery electric utilities, as well as lost-revenue recovery and demand-side management incentives.

In 2010 Vectren (electric and gas) received approval for a tiered structure shareholder performance incentives and Indiana Michigan Power Company received approval for a shared benefits approach. (See Cause No. 43427; Cause No. 43618).

Review relevant Dockets by searching here.