Spend or save? It's the age-old question facing anyone with a
checkbook and a piggy bank. Now, policymakers are applying the
same concept to the public’s consumption of power. While states
continue to pursue and promote greater use of renewable power to
help address global climate change and energy shortages, many
also are looking at efficiency as a policy tool to help them
achieve the same goal. Call it the piggy bank approach. This
spring, two states adopted standards to achieve energy savings
through greater efficiency at the utility and consumer levels.
In February, New Mexico Gov. Bill Richardson signed legislation
strengthening the state’s Efficient Use of Energy Act. The
legislation directs electric and gas utilities to provide cost-
effective and achievable energy--efficiency resources to their
customers. Mirroring the state’s renewable portfolio standard,
which requires utilities to derive a minimum amount of power
from alternative energy sources, the law also establishes an
efficiency standard for pr