Energy efficiency is the cheapest form of electricity we have. It directly lowers energy bills and also reduces the need for expensive investment in new power plants and transmission lines. In testimony earlier this year, Xcel Energy estimated that it didn’t need to build nine new power plants over a 25-year period because its energy savings programs have helped customers use energy more efficiently. It’s a resource we all have access to—you don’t have to live in a windy area or on top of a natural gas deposit to take advantage of its benefits. Everyone—from farmer to family of four—can reap the cost and energy savings benefits of energy efficiency.

And that’s exactly what legislators envisioned when they passed Minnesota’s Conservation Improvement Program (CIP), an energy efficiency goal that requires utilities to save between 1 and 1.5 percent of the utility’s annual retail energy sales. The law passed in 2007 with broad, bipartisan support, and utilities responded with lighting, heating, cooling, and appliance rebates and programs. These programs have saved energy and money across Minnesota.

Recently, as part of their CIP requirements, Minnesota’s utilities filed plans with the Department of Commerce outlining current and future efficiency programs. As part of our work to promote and implement greater energy efficiency across the state, Fresh Energy staff submitted our observations and recommendations to the Department of Commerce. Overall, the plans looked good, and most of the utilities are well on their way to meeting their state goals. Across the state, many utilities offer innovative projects to a diverse group of customers—from swapping out consumers’ old light bulbs and refrigerators to helping dairy farms improve their efficiency—and the plans contained some real success stories. But there’s always room for improvement. Some utilities offer a very limited number of programs, while some focus only on a specific issue with a specific group of consumers, such as changing light bulbs in people’s homes.

But throughout the plans, this much was evident: no matter the location or size, efficiency is the most cost-effective method to lower customer and business energy costs while reducing overall energy consumption.

Recently, as part of their CIP requirements, Minnesota’s utilities filed plans with the Department of Commerce outlining current and future efficiency programs. So how are they doing?