Energy Efficiency and Demand Response Fund

July 26, 2021


Beginning in June 2008, Illinois's two electric utilities with more than 100,000 retail customers (Ameren and Commonwealth Edison) are required to implement energy efficiency and demand response programs that cost effectively reduce their delivery load. Much like the state renewable portfolio standard (RPS), the goals of the program will increase incrementally each year. Energy efficiency and demand response are treated as separate within the overall program. Energy efficiency refers to reductions in gross energy use (i.e., Megawatt-hours per year), while demand response refers to reductions in peak demand. Demand response measures do not necessarily result in overall energy use reductions. The annual incremental energy savings goals are as follows:
  • 0.2% year commencing June 2008
  • 0.4% year commencing June 2009
  • 0.6% year commencing June 2010
  • 0.8% year commencing June 2011
  • 1.0% year commcening June 2012
  • 1.4% year commencing June 2013
  • 1.8% year commencing June 2014
  • 2.0% year commencing June 2015 

  • The utilities will be permitted to recover all prudently incurred expenses for the measures adopted under the program. Program costs will be subject to certain annual limits (as covered below) although the utilities will be allowed compensation in the event that actual costs exceed the predetermined annual limits. All of the demand response programs will be administered by the utilities while 25% of the energy efficiency programs will be implemented by the Illinois Department of Commerce and Economic Opportunity (DCEO).

    Find more information on ComEd's Commonwealth Edison Company’s Energy Efficiency and Demand Response Plan here.

    Program Overview

    Implementing Sector: State
    Category: Regulatory Policy
    State: Illinois
    Incentive Type: Public Benefits Fund
    Web Site:
    Start Date:
    Eligible Renewable/Other Technologies:
    • Custom/Others pending approval
    • Yes; specific technologies not identified
    Types: Energy efficiency, demand response
    Total Fund: $335.3 million (FY 2009-2011)
    Charge: Varies, limited to greater of 0.5% customer cost/kWh from previous year or 0.5%-2.015% of 2007 sales. Levels frozen in 2012 and thereafter.


    Name: Public Act 095-0481
    Date Enacted: 08/28/2007
    Effective Date: 08/28/2007

    This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.