Massachusetts Energy Efficiency Obligation

In 2009, the government of Massachusetts introduced an energy efficiency obligation for all sectors except transport, covering electricity and gas to achieve a yearly energy savings per year of 2 177 GWh. Obligated parties include electricity and natural gas distribution companies. For electric, yearly incremental energy savings targets began at 1.4% in 2010, ramping up to 2.94% by 2016. For natural gas, targets began at 0.63% in 2010, ramping up to 1.24% by 2016. Targets are set every three years for a three-year period, based on the legislatively mandated obligation to acquire all available energy efficiency and demand reduction resources that are cost effective or less expensive than supply. Eligible energy efficiency measures may include (but are not limited to) the following programmes: energy efficiency and load management; demand response; innovation; efficient appliances, heating, air conditioning, lighting; public education; programmes providing support for energy use assessment, real time monitoring systems, engineering studies and services related to new construction or major renovation. Calculations of savings are based on deemed savings, The budget and approach to monitoring and verificationare set forth in the utility three-year plans and approved by the Department of Public Utilities (DPU). Programme administrators must report quarterly to the "energy efficiency advisory council" (EEAC). The EEAS is an official body, appointed and convened by the DPU by law. The EEAC provides an annual report on progress with utility 3-year plans to the Department of Public Utilities and joint committee on telecommunications, utilities and energy.

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