Most states that have started to implement electric restructuring have set up policies to finance energy-efficiency improvements for residents and businesses. However, most of these programs fall far short in tapping the vast benefits that energy efficiency can provide in terms of electric reliability and savings for consumers. And funding levels for the efficiency programs have typically been set at low levels compared to the peak years of spending on efficiency which took place in most cases between 1993 and 1995. With the electric power crisis of 2001, many states are re-thinking this strategy and have begun to take a second look at the enormous benefits that energy efficient technologies can have on the economy and the environment. New Jersey has also comitted to increased spending of 70 percent over current levels and California's Governor is expecting the legislature to pass a comprehensive package of energy efficiency spending and incentives to help solve that state's power crisis.
States have three core decisions to make when designing their efficiency funding programs.
State efficiency funds should also not include a sunset date, unless certain performance benchmarks are first met. Through Efficiency Vermont, consumers, businesses, manufacturers, and farmers across the state can participate in the same seven energy and money-saving programs. Not Sales Oregon may have found the solution to the problem of the need for electric utilities to sell electricity rather than help people use it more efficiently.