Arizona Energy Efficiency Obligation

In 2010, the Arizona government introduced an energy efficiency obligation for all sectors except transport, covering electricity and gas. The obligation seeks to achieve cumulative energy savings with in the electricity and gas sector equal to 22% and 6% respectively of the previous year's sales by 2020. (The savings goals started in 2011 with an annual target of 1.25% for electricity and 0.5% for gas. The annual target increases over time to reach the cumulative goal by 2020.) Obligated parties include investor-owned electricity utilities and all gas utilities. Ths Salt River Project and electric co-operatives also have a (somewhat lower) target. Gas co-operatives and propane companies must meet a proportion of the standard for regulated gas utilities. Eligible energy efficiency measures include residential lighting, residential swimming pool pumps, appliance recycling, new home construction, HVAC, efficient appliances, behavioural programmes, retrofits, planting shade trees, low-income weatherisation, industrial motors, dynamic tariffs (peak time rebates, time-of-use, and super peak pricing). Calculation of measures is based on field metering, on-site inspection, customer surveys, trade ally interviews, focus groups, billing records and analysis, review of implementation tracking databases and documentation. Monitoring and verification evaluations are conducted by third parties for each of the regulated utilities.Regulated utilities are required to submit annual reports on progress with programmes and measures to the Arizona Corporation Commission for approval.

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