ECC Endorses Resource Value Framework
The ECC board has endorsed the Resource Value Framework (RVF), a set of principles for evaluating the cost-effectiveness of utility ratepayer-funded electricity and natural gas energy efficiency resources. From ECC’s perspective, a key plus is that the RVF allows for consideration of non-energy benefits – such as health and safety and the hiring of disadvantaged workers – in the cost-effectiveness calculations for energy efficiency programs.
The RVF was developed by the National Efficiency Screening Project (NESP), a group of organizations and individuals working to improve the way such energy efficiency programs are screened for cost-effectiveness, as well as to advise decision makers on which efficiency resources are in the public interest and what level of investment is appropriate. The NESP is coordinated by the Home Performance Coalition and has more than 30 members. Endorsing the RVF confers membership in NESP.
Customer-funded energy efficiency programs have generated tens of billions of dollars of savings for households and businesses throughout the nation by reducing energy bills of program participants by deferring the need for new power plants, reducing marginal energy costs, avoiding transmission and distribution costs, reducing risk on the utility system and helping achieve key energy policy goals. More than $7 billion is spent every year on ratepayer energy efficiency programs.
States have a tremendous opportunity to expand upon these benefits through ongoing and future energy efficiency initiatives, but to take full advantage of this opportunity, many states need to revisit and update their cost effectiveness screening methods and practices.