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Energy Efficiency & Demand Response

Energy Efficiency & Demand Response. MARC Conference Kansas City, MO June 8, 2010 Tony Clark Commissioner North Dakota Public Service Commission. The Challenges.

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Energy Efficiency & Demand Response

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  1. Energy Efficiency & Demand Response MARC Conference Kansas City, MO June 8, 2010 Tony Clark Commissioner North Dakota Public Service Commission

  2. The Challenges • Increasing demand for power. By 2020 there is an estimated need for 352GW of new generation capacity. This is in addition to the 1061GW currently in service. • Increasing costs for plant additions and fuel sources • Reliability • Local permitting opposition • Demand for new technology investments like “Smart Grid” and new transmission

  3. The Challenges • Political tolerance for rate hikes • Environmental concerns & uncertainty • Access to capital/cost of capital • Fuel source uncertainty While there are many challenges & no one solution, nearly all regulators view efficiency & DR as critical first steps in meeting the needs of consumers

  4. States Lead the Way • NARUC has been an active participant in EE collaborations with other government entities (DOE, EPA) • NARUC participation is led by the association’s relevant energy related committees, task forces and individual state members • Where the ‘heavy lifting” is done is within individual states, as utility commissions hear cases, promulgate rules, and work with their regulated companies, legislatures and governors

  5. States Lead the Way • States across the country have been viewing EE/DR as the fuel of first choice and implementing policies to encourage increased EE/DR • Examples from three very different states: • California • Vermont • North Dakota

  6. States are Key to Meeting EE/DR Goals • As “laboratories of democracy,” states can experiment to find what works, what doesn’t, and under what conditions • Decisions about what works and what does not are highly specific to regions and states • To strike the right balance for consumers, businesses, the economy and regulated utilities, states must have flexibility to craft solutions that work for them

  7. Advancing EE/DR Objectives • Structure regulatory environment to recognize the value of EE and other demand side management programs in the market • Empower states to make cost-based decisions • Share knowledge among states on what works • Empower states with helpful analytical resources for deciding cases and rulemakings, but leave the ultimate decisions to those who have to live with the consequences

  8. Thank You! Commissioner Tony Clark North Dakota Public Service Commission 600 East Boulevard Bismarck, ND 58505-0480 701-328-2400 www.nd.gov/psc tclark@nd.gov

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