Using energy more efficiently and reducing electricity consumption in response to price increases ("demand response") have become high priorities for state and federal energy regulators, particularly in areas reliant on fossil fuel-fired energy generation. Energy efficiency and demand response measures can provide a means for lowering energy usage, conserving energy and lowering energy costs. As utility investment in energy efficiency measures increases, some state regulators are promoting cost recovery in the utility rate base, including an increased rate of return in some instances. The policy of promoting energy efficiency has also been reflected at the federal level in various legislative proposals, including Renewable Portfolio Standards (RPS) legislation that allows a certain percentage of the renewable requirement to be offset by using energy efficiency measures. Demand response services and demand response infrastructure, including advanced, or "smart" utility meters, are among the growing markets within the electricity industry.
With our significant experience in the energy efficiency and demand response arenas, Schiff Hardin lawyers can assist clients in undertaking the following tasks:
- Energy cost diagnostics help commercial and industrial companies lower their energy costs. Working with engineers and consulting professionals, Schiff Hardin can help clients implement the various energy savings options identified, including the following, where applicable:
- Demand response measures, including use of smart meters
- Energy efficiency opportunities
- Distributed generation (on-site generation) and net metering (selling to the transmission grid any excess power generated on-site)
- Renewable energy supply purchase options
- Renewable energy project development options
- Clean tech use - utilization of new or improved energy technologies
- Review of existing tariffs, and review of energy supplier's practices
- Review of state commission's applicable rules and policies
- Participate in utility rate case proceedings to address proposed rate increases
- Energy efficient building construction will allow builders, developers, building management companies and others in complying with energy efficiency codes and standards, including "Green Building" development and Leadership in Energy and Environmental Design (LEED) standards. Schiff Hardin represents clients in negotiating contracts containing energy efficiency requirements and has the expertise to assist state and local regulators in developing energy efficiency codes and standards.
- Development of energy efficiency and demand response regulations requires deep understanding of energy supply and user requirements. We can assist state regulator clients in developing energy efficiency and demand response regulations, including related issues such as interconnection, smart metering and net metering standards.
- Entry into electricity markets by demand response providers can be daunting. Schiff Hardin can assist demand response service providers in complying with existing regulations governing participation in electricity markets, and advocating for new regulation or new regulatory interpretation to facilitate their involvement.