Iowa Energy Efficiency Obligation

In 2009, the government of Iowa introduced an energy efficiency obligation for all sectors except transport, covering electricity and gas. Obligated parties include rate-regulated electricity and natural gas utilities. Municipal and co-operative utilities are required to establish, report on, and meet their own efficiency goals. Targets vary by utility. Utilities were required to consider a 1.5% annual savings target; however, the target approved by the IUB is lower to stay within the cost cap set for the obligations. The average target for electric utilities is annual incremental savings of 1.2% of sales per year; and for gas utilities, of between 0.7% and 1.2% of retail sales per yea. Susequently, utitiles have proposed lower goals i nJuly 2018 filings. Eligible energy efficiency measures include energy audits, education, rebates and other financial assistance,research projects, time-of-use-rates, tree planting, and hot water insulation. There is no standard for a savings calculation. There are also no specific legal requirements for monitoring & verification. Details of M&V approach are included in utility plans and approved by the IUB as part of the plan approval process.

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