Illinois commission holds policy session on energy efficiency programs
The Illinois Commerce Commission (ICC) recently held a policy session on new methods for evaluating
the savings brought about by energy efficiency programs.
The current process for measuring these savings in the state is evaluation, measurement and verification (EM&V), which makes use of a technical reference manual and ‘deemed savings.’
“EM&V helps us determine whether energy efficiency targets are met and whether energy efficiency funds are spent appropriately,” ICC Chairman Brien J. Sheahan said. “I think this session was an important step forward in keeping regulators, and all other stakeholders, up-to-date and informed on innovation in EM&V.”
During the session, a panel of experts discussed emerging technologies related to EM&V. These innovations have come to be known collectively as M&V 2.0, since they focus mainly on improvements to the measurement and verification processes.
Among the technologies discussed was Advanced Metering Infrastructure (AMI), which includes smart meters. AMI allows for real-time feedback, which increases the flexibility of energy efficiency programs. It also saves time by allowing verification to occur remotely. The panelists also noted how M&V 2.0 could potentially improve savings estimates and discussed regulatory frameworks and policies that take M&V 2.0 into consideration.
“Measuring utility-induced energy savings is extremely difficult because it requires estimating what would have happened if the utility program did not exist,” ICC Economic Analyst David Brightwell said. “The best method to do this, from a statistical standpoint, is not practical for most programs, and the alternative methods rely on strong assumptions that are not always verifiable. However, this increased granularity of available data made possible by the AMI allows for more testing of predictions and provides opportunities for better developing second-best experimental designs.”
