Issue link: https://resources.tangoanalytics.com/i/1516392
COMPLIANCE WITH REGULATIONS: Electricity ecosystems are undoubtedly at the heart of addressing the energy transition and decarbonization agenda, forcing utility companies into the front lines of new climate regulations. At present, more than 80% of US investor-owned utilities have committed to reducing carbon emissions. The move is driven by environmental, social, and governance (ESG) goals, as well as consumer support, opportunities for value creation, evolving state clean energy mandates, and potential federal legislation. Although utility companies may be dedicated to adopting cleaner energy and grid efficiency, they still repeatedly face challenges in complying with complex regulations. Nearly every state has adopted or is considering green energy legislation. This includes building benchmarking mandates, mandatory GHG reduction bills, and goals to transition to low-carbon electricity. As critical participants in these mandates, utility companies will need to: 1) be on top of aggregating and submitting data to platforms like ENERGY STAR's Portfolio Manager on behalf of commercial customers that must comply, 2) track and reduce their carbon emissions, and 3) engage with customers to help them reduce energy usage and provide avenues for them to procure cleaner options. Utility companies need to understand that the same legislative pressures growing for them are also growing for their customers, who may increasingly be upping their requests for utility data to comply. Benchmarking Ordinances: Sustainability & Energy Management Simplified Benchmarking ordinances require large building owners to report their gas and electric usage data to a common system. In the U.S., that system is ENERGY STAR portfolio manager. These bills require direct action from utilities to help their commercial customers comply. This is either facilitated through direct submissions to ENERGY STAR Portfolio Manager on behalf of customers or utilities may maintain a portal for customers to gain access there. Utilities should anticipate benchmarking ordinances to pass in most regions across the U.S. with implementation timelines for data acquisition within months after enactment. With these laws, the ability to aggregate meter billing data, manage tenant data, and balance tenant vs. building owner data access, and knowledge of portfolio manager, will be essential.