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Policy Library

Increasing Utility Energy Efficiency Creates Green Jobs and Saves Consumers Money

Utilities have substantial power to set rates and determine energy choices for consumers, making them essential to state efforts to reduce pollution and promote clean energy choices. States can take action to reduce costs through strong utility energy efficiency laws, which set ambitious energy efficiency targets for utilities. The Utility Energy Efficiency Act tasks utilities with increasing efficiency and preventing energy waste. States with these goals have seen billions in savings, along with growth in the green energy sector.

The National Landscape

Passed in:

Arizona, Arkansas, California, Colorado, Connecticut, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, Vermont, Washington, Wisconsin

In The News

“'Energy efficiency is a cost-effective and reliable resource that deserves to be a significant part of every state’s energy portfolio,’ said Annie Downs, ACEEE state policy research analyst. ‘Setting energy efficiency targets is smart policy that encourages utilities to help their customers save money…instead of spending even more money building unnecessary new power plants.'”
“America fails to capture some two-thirds of the power it generates, much of it through simple waste, according to federal data. In a recent survey, the United States was ranked eighth among 23 of the world’s top energy-consuming countries in efficiency.”
Albuquerque Journal
Celebrating energy efficiency
“We know that reliable, affordable energy is vital to our economic prosperity — and efficiency gives New Mexico a big assist in that regard. Cutting energy waste saves U.S. consumers hundreds of dollars on their utility bills annually...”


  • Consumers
  • Environmental advocates
  • Renewable energy and energy efficiency sectors
  • Utilities with proper support


  • Proponents of deregulation
Call us for real-time support using this library, problem-solving tips, and follow-up from our team of national experts:
The State Line


Who does this help?
Inefficient energy production and consumption costs Americans billions each year, which shows up on their monthly electric bills. Additionally, consumers are impacted through harmful side effects of energy production such as air pollution. This proposal helps consumers and all state residents impacted by mitigated environmental impacts.
Is this high cost to the state?
The energy savings and benefits of energy efficiency programs lead to net gains for states and consumers from these programs. Massachusetts estimates that its efficiency programs created $12.5 billion in savings and benefits between 2008 and 2015.
Won’t all this regulation hurt utility companies?
No, saving energy through efficiency improvements is cheaper than building new power plants and well-structured programs in states have allowed efficiency targets to benefit utilities, customers and the environment alike.

Model Policy

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