Paving The Way For Increased Energy Efficiency In Washington State
Earthjustice took action to decouple the profits of a Pacific NW utility from its sales, paving the way for the reduction of fossil fuel use and increased energy efficiency. In 2013, an agreement was reached that helps Washington’s largest utility increase its energy efficiency savings.
Regional Office / Program
The utilities that supply electricity to consumers typically have a financial disincentive to be energy efficient. They get paid based on how much power they sell, so if they sell less power by increasing energy efficiency, profits drop.
Puget Sound Energy (PSE) is one such utility. Earthjustice took legal action to “decouple” its profits from the amount of electricity it sells. Decoupling breaks the link between the utility’s profits and how much power it sells, allowing utilities to increase their energy efficiency efforts without financial penalties. In June 2013, Washington regulators agreed to a plan that allows PSE to increase its electricity savings by at least 5 percent while making PSE’s revenue more predictable.
Case page created on June 26, 2013.