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Should utilities have new energy efficiency goals?

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The commission responsible for setting electricity rates in New Hampshire has approved a rate increase to fund energy efficiency.

The Public Utilities Commission (PUC) approved an Energy Efficiency Resource Standard (EERS) for New Hampshire utilities. The EERS requires utilities to achieve a certain reduction in electricity and gas sales through energy efficiency measures.

To fund these energy efficiency programs, the PUC approved an electricity rate increase. The commission estimates that the average residential Eversource customer will see their monthly electricity bill increase $0.33 in 2017 and $0.65 in 2018. 

According to the PUC, "Those who choose to participate in the energy efficiency programs that will be developed to meet the EERS targets will see reduced gas and electric bills, and all utility customers should see reduced costs for electric and gas supply in the long run." 

Opponents of the EERS have two objections. First, they question whether energy efficiency measures will actually reduce total energy use. They cite the "rebound effect," in which consumers use more energy once efficiency measures lower the cost of energy. 

Opponents also question the PUC decision to implement the EERS without input from the state legislature. Sen. Jeb Bradley suggested to NH Business Review that the PUC will be called to the legislature to prove how EERS will save customers money. 

Do you support the EERS in New Hampshire? Let us know in the comments.

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