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Industrial Users Can Opt-Out Of Energy Efficiency Programs

By Brandon Smith

Posted March 23, 2015

The General Assembly is in the midst of creating a new statewide energy efficiency program. And it's one that the largest energy users – industrial customers – won't have to take part in.

But lawmakers say that doesn't mean industrial users won't be efficient.

The creation of a new energy efficiency program is necessary after lawmakers eliminated the old one last year. That result began with a bill allowing industrial consumers to opt-out of utility-run, state-mandated energy efficiency programs.

The opt-out remains part of this year's bill creating a new program. But the bill's House sponsor Eric Koch, R-Bedford, says Hoosiers should be confident that industrial users will still engage in energy efficiency.

"They have an incentive to be as efficient as possible – it's their money," Koch says. "And they have people working within the companies who are experts at energy efficiency."

Rep. Matt Pierce, D-Bloomington, says it's true that industrial companies will engage in energy efficiency...but only if it's profitable in the short term.

"The kinds of investments that require more capital up front and will save you more money but over a longer term – those tend to get left behind," Pierce says.

Pierce says he'd like to see a system in which the state at least monitors industrial energy efficiency programs to ensure they're being as efficient as possible.

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