In 1999, Vermont´s Public Service Board (PSB) consolidated the efficiency acquisition programs of all of Vermont utilities into a single, state-wide energy efficiency utility (EEU) - Efficiency Vermont - and a smaller EEU, covering Burlington, Vermon't largest city. This was the first implementation of a third-party administered state-wide resource acquisition program in North America.
Efficiency Vermont is paid for through an Energy Efficiency Charge (EEC) assessed on all customer energy bills and has been operated since its inception by the Vermont Energy Investment Corporation (VEIC), an independent non-profit entity. The PSB sets annual and three-year efficiency acquisition targets and budgets for Efficiency Vermont while Vermont's Public Service Department (PSD), an agency within the executive branch of the Vermont state government, is responsible for monitoring and evaluating service offerings. Performance against targets determines VEIC´s compensation.
Industry accounts for approximately 16% of energy use in Vermont. Programs for industrial customers include technical assistance in the form of auditing, project development, energy management training, and employee energy efficiency awareness. Financial incentives are available for investments in common-technologies such as lighting and motors, and for customized energy efficiency projects. Customized projects are the dominant source of efficiency acquisition, accounting for approximately 90% of the industrial project total.
Target Group - Size:
Target Group - Industry Focus:
Target Group - Description:
Industry accounts for approximately 16% of energy use in Vermont.
GHG emission source covered:
To acquire cost effective energy resources to meet future load growth, reduce environmental impacts, and avoid or delay the need for additional transmission and generation
Program Funding Source:
"Energy Efficiency Charge" on consumer electric bills, limited funding from other sources
Total Program Funding:
$41 million (2012)
Program Offerings for Industry:
Efficiency Vermont´s programs for industrial customers include technical assistance in the form of auditing, project development, training on basic energy management techniques, and employee energy efficiency awareness.
Financial assistance is provided for the purchase and installation of efficient common technologies such as lighting, motors, variable speed drives on a prescriptive ($/unit) basis. More complex projects are eligible for custom incentives that are negotiated with program staff and linked to annual energy savings.
Efficiency Vermont launched a new Energy Leadership Challenge in July 2011. Under this challenge, Vermont's largest energy consumers are asked to commit to saving 7.5% of their energy use over a two-year period. Efficiency Vermont provides special technical assistance to these customers, especially on energy management and employee engagement, with a view to generating continuous improvement programs that may be synchronized with ISO 50001 in the future.
Efficiency Vermont does not currently offer training or implementation assistance in any specific Energy Management System (EnMS).
Implementing Entity Type:
M&V requirements on industry:
Vermont´s Department of Public Service (DPS) is responsible for evaluating the energy savings and other performance indicator claims of Efficiency Vermont. Monitoring and verification procedures are laid out in the Procedure and Administration document (*2). The DPS is required to annual certify progress towards QPI and EEU performance relative on QPI relative to budget expenditures to the PSD, and to provide full assessments each three-year cycle. The EEUs are required to establish and maintain a Technical Reference Manual (TRM) that provides up-to-date documentation on all measure and program assumptions and algorithms used to calculate savings for prescriptive energy savings measures (*3) . For customized measures or projects, EEUs are required to keep careful documentation and the PSD undertakes sample on-site reviews as part of its verification process.
Evaluation of Program:
Program flow chart
Program Flow Chart
Impacts and Results
Analytic base for target (or target setting mechanism):
Vermont’s 2011 Long-term Demand Resource Plan (DRP) includes a new foundation for setting targets and budgets for Efficiency Vermont. Key elements of the DRP are annual electricity efficiency acquisition goals and budgets for a 20-year period, annual provisional heating-and-process fuels efficiency goals and budgets for a 10-year period, and performance indicators, budgets and compensation structures for the EEUs for the upcoming three years.
Targets are justified by two electricity efficiency potential studies for the state of Vermont that were prepared for the PSB. The studies found an economically achievable energy efficiency potential of about 30% by 2031.
Savings (program total):
Average unit cost of energy saved:
4.1 cents/kWh (2010)
Non-energy benefits (co-benefits):