How Save-A-Watt Will Work
“Saving energy should be as much a part of a utility’s mission as generating and delivering electricity.” – Jim Rogers
The goal of Duke Energy’s save-a-watt model is to help our customers save energy – and money – and still earn a return for our investors. Under current regulations, utilities make money by earning a return on their investment in physical assets such as power plants, poles and wires, and by charging customers for each kilowatt-hour of electricity they use. Under the save-awatt model, we would be allowed to earn a return on our investments that help customers save energy.
In essence, the save-a-watt model treats investments in energy efficiency just like investments in a new generating station – removing the regulatory incentive to build new power plants. It is a win for our customers, a win for the company and a win for the environment.
We are adding about 60,000 new customers per year in the Carolinas and our Midwest service areas. To meet that demand, we will require more than 6,000 megawatts of new capacity by 2012. Energy efficiency as our fifth fuel and the save-a-watt model are critical components to avoid building new, carbon-emitting generation.
In 2007, we filed for regulatory approval of programs developed under the save-a-watt model in North Carolina, South Carolina, and Indiana. We are planning to file for similar energy efficiency programs in Ohio and Kentucky in 2008. We hope to receive regulatory approval for the save-a-watt model in 2008.