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