In August 2024, Zack Tyler, Managing Consultant, conducted an energy efficiency and demand response program gap analysis of the Tennessee Valley Authority (“TVA”) on behalf of the Southern Environmental Law Center. The report concluded that there are substantial energy and demand savings opportunities available to TVA beyond those currently offered, which could assist customers with lowering their utility bills and avoid investment in costly supply-side resources. Identifying these opportunities is critical as TVA customers have experienced a 10% rate hike in the past two years, as highlighted by this report from Fox17 WZTV Nashville: Amid second rate hike in 2 years, is TVA using enough green energy to cut customer costs? (fox17.com)
The report’s recommendations include:
- Increase the number of Local Power Companies offering EnergyRight programs to their customers. TVA should strive for 100% participation among the LPCs. The benefits of EE and DR programs will only be maximized when all customers have access.
- Provide additional details regarding how the $1.5 billion invested in demand management will be spent across EE and DR efforts. TVA’s announcement infographic includes some high-level details, but it would be beneficial to see what proportion of funding will be allocated to the programs listed in the announcement and what type of incentives will be available to customers.
- Increase the incentive amounts available for residential building shell upgrades. As part of this process TVA should consider creating a scaled incentive structure based on square footage of insulation, air leakage reductions, or overall electricity use reductions.
- Expand the number and types of EE and DR programs offered to customers. Both the residential and C&I sectors would benefit from programs focused on new construction, and there is currently no DR offering for residential customers.
- Expand the specific measures being covered by EE programs in both the residential and C&I sectors. Proposed measures include, but are not limited to, smart thermostats, low-flow showerheads, commercial lighting controls, C&I envelope measures, and commercial water heating.
The report can be found here: https://fox17.com/resources/pdf/b21e90c1-97b7-4342-8a75-87866228a544-SELClawcenterstudy.pdf