Amends the Public Utility Regulatory Policies Act of 1978 to prescribe efficiency resource standards for retail electricity and natural gas distributors.
Requires each retail electricity or natural gas distributor to undertake electricity and natural gas savings measures in each calendar year, beginning with 2009, that produce electricity and natural gas savings as a percentage of the distributor's base quantity at a specified applicable rate.
Instructs the Secretary of Energy to issue rules establishing a nationwide credit and credit trading system for electricity and natural gas savings.
Authorizes any person to apply to the Secretary for the establishment and certification of a not-for-profit Electric and Natural Gas Savings Corporation.
Directs the Federal Energy Regulatory Commission (FERC) to develop model provisions for mandatory adoption by state utility regulatory commissions regarding: (1) revenue stability and incentives for distributors; (2) nondiscriminatory identification of cost-effective savings opportunities; and (3) development of model language on revenue decoupling and shareholder incentives in ratemaking policies.