Estimating the Drivers of the Cost of Saved Electricity in Utility Customer-Funded Energy Efficiency Programs

Energy efficiency programs funded by utility customers provide an electricity resource in most U.S. states, but their scale and cost of saving varies significantly state. In this paper, we explore the drivers saved these with econometric model nearly a decade data reported program administrators. We found strong evidence for economies weak diseconomies scale, which suggests that states low levels savings relative to retail sales can increase size without large increases electricity. discuss examples energy forecasting potential modeling light our analysis identify methodological improvements relevant utilities grid operators. This paper provides insights into economics customer-funded will support regulators, utilities, policymakers utilize as resource.