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H.J.R. 9

             1     

JOINT RESOLUTION ON COST-EFFECTIVE

             2     
ENERGY EFFICIENCY AND UTILITY

             3     
DEMAND-SIDE MANAGEMENT

             4     
2009 GENERAL SESSION

             5     
STATE OF UTAH

             6     
Chief Sponsor: Roger E. Barrus

             7     
Senate Sponsor: ____________

             8     
             9      LONG TITLE
             10      General Description:
             11          This joint resolution of the Legislature urges state and local governments, electric and
             12      natural gas utilities, and Utah's Public Service Commission to work to increase cost-
             13      effective and energy efficient utility services.
             14      Highlighted Provisions:
             15          This resolution:
             16          .    urges state and local governments, electric and natural gas utilities, and municipal
             17      utilities to work together to promote and encourage cost-effective energy efficiency
             18      and conservation;
             19          .    urges that state and local government and local and municipal utility programs be as
             20      cost effective and energy efficient as is technically and economically feasible;
             21          .    urges the Public Service Commission to work with electric utilities and other
             22      interested parties to identify and, where appropriate, approve cost-effective energy
             23      efficiency and load management programs designed to reduce projected electric
             24      usage by not less than 1% of the utility's annual retail sales;
             25          .    urges the Public Service Commission to work with natural gas utilities and other
             26      interested parties to identify and, where appropriate, approve cost-effective energy
             27      efficiency programs designed to reduce projected natural gas usage by not less than


             28      0.5% of the utility's annual sales;
             29          .    urges the Public Service Commission to ensure that electric and natural gas utilities
             30      recover expenses incurred in promoting and making available energy efficiency and
             31      local management programs and that they are not penalized financially if their
             32      programs fail to meet the saving goals approved by the Commission;
             33          .    urges the Public Service Commission to approve regulatory mechanisms that
             34      remove utility disincentives to efficiency and conservation and enable utilities to
             35      recover reasonable fixed costs; and
             36          .    urges the Public Service Commission to allow electric and natural gas corporations
             37      to earn a profit on their investments in cost-effective energy efficiency and load
             38      management programs, with the level of profit tied to an indicator of program
             39      performance.
             40      Special Clauses:
             41          None
             42     
             43      Be it resolved by the Legislature of the state of Utah:
             44          WHEREAS, according to Utah Code 63-53b-301 , it is the policy of the state that Utah
             45      will pursue energy conservation and energy efficiency;
             46          WHEREAS, Governor Huntsman has set a goal of increasing energy efficiency in the
             47      state of Utah by 20% by 2015;
             48          WHEREAS, increasing cost-effective efficiency of energy use will save consumers and
             49      businesses money, save resources for future generations, and reduce energy costs for all
             50      Utahns;
             51          WHEREAS, the Legislature has created incentives and a revolving loan fund to help
             52      state agencies increase energy efficiency;
             53          WHEREAS, state and local governments, electric and natural gas utilities, and
             54      municipal utilities should work together to promote and encourage cost-effective energy
             55      efficiency and conservation;
             56          WHEREAS, electric and natural gas utilities and municipal utilities can play an
             57      essential role in helping consumers and businesses to identify and implement cost-effective
             58      energy efficiency measures;


             59          WHEREAS, the Public Service Commission, in consultation with electric utilities and
             60      other interested parties, should identify and, where appropriate, approve cost-effective energy
             61      efficiency programs that are designed to reduce projected electric and natural gas usage;
             62          WHEREAS, the Public Service Commission should ensure that electric and natural gas
             63      utilities recover the expenses incurred in promoting and making available energy efficiency and
             64      local management programs and that they are not penalized financially if programs fail to meet
             65      the saving goals approved by the Commission;
             66          WHEREAS, electric and natural gas utilities should not be penalized financially by
             67      providing consumers and businesses with access to information and programs which increase
             68      their energy efficiency and reduce their utility bills;
             69          WHEREAS, the Public Service Commission should ensure that utilities are not
             70      penalized financially when they help their customers save money;
             71          WHEREAS, the Public Service Commission should approve regulatory mechanisms
             72      that remove utility disincentives to efficiency and conservation and enable utilities to recover
             73      reasonable fixed costs; and
             74          WHEREAS, the Public Service Commission should allow electric and natural gas
             75      utilities to earn a profit on their investments in cost-effective energy efficiency and load
             76      management programs, with the level of profit tied to a reliable indicator of program
             77      performance:
             78          NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah
             79      urges state and local governments, electric and natural gas utilities, and municipal utilities to
             80      work together to promote and encourage cost-effective energy efficiency and conservation.
             81          BE IT FURTHER RESOLVED that the Legislature urges that state and local
             82      government and local and municipal utility programs be as cost effective and energy efficient
             83      as is technically and economically feasible.
             84          BE IT FURTHER RESOLVED that the Legislature urges the Public Service
             85      Commission, in consultation with electric utilities and other interested parties, to identify and,
             86      where appropriate, approve cost-effective energy efficiency and load management programs for
             87      customers, with the programs designed to reduce projected electric usage by an amount equal
             88      to not less than 1% of the utility's annual retail sales.
             89          BE IT FURTHER RESOLVED that the Legislature urges the Public Service


             90      Commission, in consultation with natural gas utilities and other interested parties, to identify
             91      and, where appropriate, approve cost-effective energy efficiency programs that are designed to
             92      reduce projected natural gas usage by customers by an amount equal to not less than 0.5% of
             93      the utility's annual sales.
             94          BE IT FURTHER RESOLVED that the Legislature urges the Public Service
             95      Commission to ensure that electric and natural gas utilities recover the expenses incurred in
             96      promoting and making available energy efficiency and local management programs and that
             97      they are not penalized financially if programs fail to meet the saving goals approved by the
             98      Public Service Commission.
             99          BE IT FURTHER RESOLVED that the Legislature urges that the Public Service
             100      Commission ensure that utilities are not penalized financially when they help their customers
             101      save money.
             102          BE IT FURTHER RESOLVED that the Legislature urges the Public Service
             103      Commission to approve regulatory mechanisms, including performance-based incentives,
             104      decoupling fixed cost recovery from sales volume, and other innovative rate designs that
             105      remove utility disincentives to efficiency and conservation and enable utilities to recover
             106      reasonable fixed costs.
             107          BE IT FURTHER RESOLVED that the Legislature urges the Public Service
             108      Commission to allow electric and natural gas utilities to earn a profit on their investments in
             109      cost-effective energy efficiency and load management programs, with the level of profit tied to
             110      the level of energy savings achieved, the net economic benefits provided by the energy
             111      efficiency and local management programs, or some other indicator of program performance.
             112          BE IT FURTHER RESOLVED that a copy of this resolution be sent to the Public
             113      Service Commission, the Utah League of Cities and Towns, the Utah Association of Counties,
             114      and the electrical and natural gas utilities operating in the state of Utah.




Legislative Review Note
    as of 1-23-09 9:52 AM


Office of Legislative Research and General Counsel


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