"We are proposing an innovative approach to help meet growing customer demand with new and creative ways to save watts instead of relying almost exclusively on new power plants to make watts," said Duke Energy's chief strategy, policy and regulatory officer, Keith Trent. "Our save-a-watt approach is the first of its kind in the utility industry, and also links energy efficiency savings to retiring older coal plants.

"Our new energy efficiency initiative, combined with our planned investment in advanced nuclear plants and increased use of renewable energy, are fundamental to our efforts to address climate change," Trent added.

Duke Energy Carolinas has had an ongoing dialogue on the save-a-watt plan with customers, environmentalists, the NCUC Public Staff and other stakeholders in a collaborative group since last August. These conversations and feedback received played a key role in the development of the program.

"The energy efficiency programs will cost customers approximately 10 percent less than the cost of building and operating new power plants," said Duke Energy vice president for energy efficiency, Ted Schultz. "The plan will compensate Duke Energy Carolinas for verified reductions in energy use and be available to all customer groups."

Customers would pay for the programs with an energy efficiency "rider" that will be included in their power bill and adjusted annually.

The 1,700 megawatts Duke Energy plans to generate in four years through energy efficiency will play a key role in meeting the company's expected customer demand growth.

The energy efficiency filing follows the NCUC's recent approval of one 800-megawatt, state-of-the-art coal unit for Duke Energy Carolinas' Cliffside Power Plant Modernization Project. In its Cliffside order, the commission accepted Duke Energy Carolinas' commitment to invest 1 percent of its annual retail revenues from North Carolina electricity sales in energy efficiency programs. This is currently approximately $35 million annually. As the results from new energy efficiency programs are realized, the company will retire up to 800 megawatts of older coal plants, significantly reducing emissions.

The concept to invest 1 percent of revenues in new energy efficiency programs and retire older coal units as power demand is reduced was recommended to the commission by Duke Energy Carolinas in November 2006.

Spending on the energy efficiency programs will be based on results, and the $35 million Duke Energy pledged to invest in new programs last November is just a starting point.

Duke Energy Carolinas' existing demand side management programs can reduce energy demand by up to 666 megawatts in the summer. Duke Energy Carolinas is requesting that the NCUC allow the company to replace these programs, most of which are closed to new customers, with a new portfolio of improved energy efficiency programs so that more customers can benefit.

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