Energy Efficiency Policies and Practices in North Dakota

Utility Sector

Utility sector policies are those policies that directly affect the way that the state's electricity and natural gas utilities do business and serve the energy needs of their customers.  These policies include utility forecasting and planning requirements for energy efficiency, requirements for energy efficiency delivery to customers, regulatory mechanisms to determine utility revenues for energy efficiency services, processes for working collaboratively with other utilities and energy stakeholders to advance energy efficiency, requirements for evaluating energy efficiency programs and portfolios, and policies to promote the development of the next generation of energy grids.

Resource Planning

Under regulatory decisions and settlement agreements (e.g. Xcel Energy, in Case No. PU-07-776), utilities in North Dakota are required to submit resource plans. Resource plans are filed every 2 years, and have a 20-year forecast horizon.

Additionally, under the North Dakota Energy Conversion and Transmission Facility Siting Act (NDCC 49-22), "[e]very utility that owns or operates, or plans within the next ten years to own, operate, or start construction on any facility shall annually develop a ten-year plan" to be filed with the Commission.  The ten year plan requires the evaluation of the environmental impact of the facility, but the Act does not specify the evaluation of demand-side resources as an alternative to supply facilities.

► Overview of Resource Planning policies in the Midwest

Energy Efficiency Standards

North Dakota does not have a statewide energy efficiency portfolio standard for electric or natural gas utilities.

► Overview of Efficiency Standards policies in the Midwest

Rate Structures & Incentives

Cost Recovery

Utilities in North Dakota can recovery costs on a case-by-case basis in their rate case proceedings.

Lost Revenue Recovery

Decoupling was approved for a natural gas rate design case for Xcel Energy in Docket PU-06-525.

Utility Incentives

There are no policies identified to support performance incentives for utility energy efficiency programs in North Dakota.

Noncompliance Penalties

Because there is not a requirement for energy efficiency in North Dakota, there are no penalties for noncompliance.

► Overview of rate structures & incentives in the Midwest

Stakeholder Collaboration

There is no formal stakeholder collaboration process for utility energy efficiency planning identified in the state of North Dakota.

► Overview of stakeholder collaboratives in the Midwest

Program Evaluation

Utilities in North Dakota that run energy efficiency programs presumably use cost-effectiveness testing internally for program screening, especially in the case of multi-state utilities that are accustomed to running efficiency programs in other service territories. However, no energy efficiency program reporting has been identified for North Dakota, and there are no statutory or regulatory requirements for program evaluation.

► Overview of efficiency program evaluation in the Midwest

Smart Grid

The Smart Grid Information Clearninghouse does not list any smart grid projects in North Dakota.

Recovery Act-funded smart grid projects that benefit North Dakota, as identified on SmartGrid.gov include:

► Overview of smart grids in the Midwest


Read the report that accompanies these pages:
Energy Efficiency Policies, Programs, and Practices in the Midwest:
A Resource Guide for Policymakers (2014 Edition)

►more information about the Resource Guide