Vermont's Utility a Finalist.

Just 3 years after replacing a patchwork of 22 energy efficiency programs, Efficiency Vermont-the nation's first independent, ratepayer-funded energy efficiency utility-has made the shortlist for the sought-after Innovations in American Government Award (79 John F. Kennedy St., Cambridge, MA 02138; Tel: 617/495-0557, Fax: 617/496-4602; Website: www.innovations.harvard.edu). As 1 of 15 finalists in the highly esteemed competition, the program receives a $10,000 grant and is now eligible to win $100,000 in what is often referred to as "the Oscars" of government award programs. In its first 2 years, Vermont's pioneering effort is generating 58,000 megawatt hours of electricity savings annually-more than three hydroelectric dams in Vermont generate, and more than Vermont's second largest city consumes, in an entire year.

For energy efficiency measures installed in the first 2 years, Efficiency Vermont is also saving 30,000 gallons of propane, 13 million cubic feet of gas, 40,000 gallons of oil, and 13 million gallons of water annually.

Previously Vermont, like many other states, had set up a fundamental business conflict by requiring its power companies to administer energy efficiency programs designed to help customers use less of their product. With 22 ...