Minnesota Energy Efficiency Obligation

In 2007, the government of Minnesota introduced an energy efficiency obligation for all sectors except transport, covering electricity and gas. Obligated parties include investor-owned utilities and retail suppliers. The obligation seeks to achieve an electricity savings target in 2015 of 1.5% and anatural gas savings target 0.5%based on last year's consumption. The largest electric utility has a 2% savings goal due to using a nuclear power plant; electricity utilities need to spend 0.2% of gross operating revenue on low-income customers and gas utilities need to spend 0.4% of gross operating revenue on low-income customers. Eligible energy efficiency measures include heating systems; HVAC; refrigeration; building fabric; lighting; audits and motors. Calculation of savings is based on deemed savings, metered savings and scaled savings. Minnesota has developed the Energy Savings Platform (ESP) to track and report the energy savings for all 187 utilities that participate in CIP. Evaluations are mainly administered by the utilities. The Division of Energy Resources and staff from Minnesota Department of Commerce also assist in the evaluation administration. Approximately 10% of custom projects are reviewed for quality.

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