State Energy Efficiency Policy Database

Tennessee Valley Authority (TVA), the largest publicly-owned electric utility in the country, is the primary electricity provider in Tennessee. TVA serves about 8.7 million customers. As a publicly-owned utility, TVA is governed by a board of directors, as are other federal power authorities. In the past, TVA had provided few energy efficiency programs and services to its customers.

While past efforts have been modest, efforts are underway in Tennessee that could lead to much greater funding for programs, increasing energy savings. In 2006, TVA's directors established a task force that examined energy conservation needs and made recommendations for an energy conservation plan for low-income households. In June 2007, the Tennessee legislature approved a joint resolution calling for TVA to initiate large-scale efforts to improve energy efficiency. House Joint Resolution Number 472 noted, "[E]nergy conservation can easily meet and exceed the growing demand for electricity; and….TVA used energy efficient means of creating power in the 1970s to supplant the need to build new power plants." Therefore, the legislature urged TVA to consider using energy efficiency to address the state's growing demand for electricity. In response, TVA has released a suite of pilot energy efficiency programs, including in-home energy auditing programs and prescriptive incentive programs for HVAC technologies.

TVA reports savings of 120,769 MWh in 2009. Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.

Links:

• House Joint Resolution 472, adopted June 2007 (calling for increased energy conservation by TVA)
• TVA 2007 Strategic Report
• Database of State Incentives for Renewables and Efficiency

The Tennessee Valley Authority (TVA) stated in its 2008 Environmental Policy that in order to meet its objective of reducing the rate of carbon emissions, it needed to reduce load growth by at least one-quarter over five years through energy efficiency and demand-side initiatives. TVA’s most recent stated goal in 2008 was to reduce peak demand 1,400 MW by 2012.

In its most recent integrated resource plan completed in 2011, TVA included savings goals from energy efficiency and demand response in its recommended planning direction.  The goals included reductions in peak demand of 3,600-5,100 MW and energy savings of 11,400-14,400 GWh, to be met by the year 2020. These ranges include savings already achieved through 2010, when the planning process began.  The degree to which these goals are binding in the long term is unclear. Tennessee's goals will be monitored for potential inclusion in ACEEE's map of states with an EERS as the efficiency programs are implemented.

For more information on Energy Efficiency Resource Standards, click here.

Links:

• 2010 Review of TVA's 2008 Environmental Policy
• Tennessee Valley Authority Integrated Resource Plan (2011)

There is currently no policy in place that rewards successful energy efficiency programs. The Tennessee Valley Authority has made a determination that incentives are not appropriate for a public power company.

For more information about utility regulation and policy, click here.