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Research Report

Aligning Utility Interests with Energy Efficiency Objectives: A Review of Recent Efforts at Decoupling and Performance Initiatives

October 1, 2006
Energy Efficiency Research
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Under typical regulatory structures, utilities do not have an economic incentive to provide programs to help their customers be more energy-efficient. Doing so reduces energy sales and associated revenues and earnings. Utilities are increasingly being called upon to increase their levels of spending and support for customer energy efficiency programs despite this disincentive. This report examines recent experience with two key regulatory approaches to overcome these structural disincentives: (1) "decoupling" of utility revenues and profits, and (2) providing shareholder "performance incentives" for achieving energy efficiency program objectives.

Research Report

Aligning Utility Interests with Energy Efficiency Objectives: A Review of Recent Efforts at Decoupling and Performance Initiatives

This Article Was About

Utility Business Models Energy Efficiency as a Resource 

Authors

martin kushler
Martin Kushler
Senior Fellow
Dan York
Senior Fellow, Utilities and Local Policy
Patti Witte
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