; (ii) reduced losses in transmission and distribution of energy; and (iii) fuel-switching, to the extent that the switching results in reduced primary energy use; and (2) in light of the cost-effective energy efficiency opportunities that exist across the United States in every sector of the economy, retail electricity suppliers, retail natural gas suppliers, and States should— (A) consider energy efficiency as a resource in utility planning and procurement activities; and (B) seek to achieve all energy efficiency that is available at lower cost than other energy supply options. (b) Definitions In this section: (1) Affiliate The term affiliate when used in relation to a person, means another person that owns or controls, is owned or controlled by, or is under common ownership control with, that person, as determined under regulations promulgated by the Secretary. (2) ASHRAE, ansi, and iesna The terms ASHRAE , ANSI , and IESNA mean the American Society of Heating, Refrigerating and Air-Conditioning Engineers, the American National Standards Institute, and the Illuminating Engineering Society of North America, respectively. (3) Base quantity (A) In general The term base quantity , with respect to a retail electricity supplier or retail natural gas supplier, means, for each calendar year for which a performance standard is established under subsection (d), the average annual quantity of electricity or natural gas delivered by the retail electricity supplier or retail natural gas supplier to retail customers during the 3 calendar years immediately preceding the year that compliance is required under subsection (d)(1). (B) Exclusion The term base quantity , with respect to a retail natural gas supplier, does not include natural gas delivered for purposes of electricity generation. (4) CHP savings The term CHP savings means— (A) CHP system savings from a combined heat and power system that commences operation after the date of enactment of this section