SB 1277 - This act allows electric and gas corporations to implement energy efficiency programs, subject to the review and approval of the Public Service Commission (PSC). Such programs shall be reasonably designed to be cost-effective or in the best interest of customers. Prudently incurred expenditures made by the corporations for approved energy efficiency programs may be recovered through rates as an ongoing expense item or as a rate base item as described in the act. The PSC may exempt the allocation of energy efficiency expenditures to low-income or senior citizen customers. An approved energy efficiency program may be terminated at any time by the PSC or the corporation, or by another proper party for good cause shown. The act does not preclude the PSC from approving energy efficiency programs that are not deemed cost-effective, if the increased costs over and above the cost-effective level are paid for by customers who voluntarily participate in the program or are otherwise paid for by financial incentives designed for that purpose. The PSC may approve or select a consultant to assist in the design and evaluation of energy efficiency programs. ERIKA JAQUES