ACEEE'S GRAPEVINE ONLINE

October 3, 2006

NEW REPORT ON REGULATORY INCENTIVES FOR ENERGY EFFICIENCY PROGRAMS CLOSE TO RELEASE

Interest in energy efficiency within the utility industry has never been greater. High fuel costs, concerns over system reliability, and increasing awareness of the need to address environmental concerns such as climate change, have all converged to create circumstances where there is widespread interest in expanding utility sector energy efficiency efforts.

One key obstacle to such expansion is the inherent economic disincentive utilities face when customers reduce their energy use. As a result, a number of states have implemented policies to reduce or eliminate that disincentive (i.e., "decoupling") and/or create positive economic incentives for shareholders when utilities meet energy efficiency objectives.

The ACEEE Utilities Program has been conducting a national review of such regulatory mechanisms and will be releasing a report in late October: Aligning Utility Interests with Energy Efficiency Objectives: A Review of Recent Efforts at Decoupling and Performance Incentives. Watch our Media Resources page for the publication announcement.

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