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Groundswell: More States Join the Regulatory Push for Utility Efficiency
Energy Efficiency programs present economic problems for the utilities similar to those attached to expansion of rooftop solar. This is the regulatory approach being used to handled energy efficiency. Will something similar be developed for solar?
Groundswell: More States Join the Regulatory Push for Utility Efficiency
Performance incentives and cost-recovery mechanisms abound.
STEPHEN LACEY: JULY 25, 2013
Ratepayer-funded utility programs dominate the energy efficiency landscape in the U.S.
From 2006 to 2008, these programs more than doubled from $2 billion to $4.8 billion. And according to the Lawrence Berkeley National Laboratory, these programs are expected to double again by 2025.
In order to encourage utilities to invest in efficiency, various states have measures in place to guarantee power companies don't have a disincentive to encourage less energy use. These typically come in two forms: fixed-cost recovery mechanisms like revenue decoupling, and performance incentives like shared savings that reward utilities that meet their efficiency goals.
In the last year, a number of states have added these regulatory structures, ensuring that a majority now have utility-friendly policies to boost efficiency programs. According to a new report from the Edison Foundation's Institute for Electric Efficiency (IEE), 31 states now have cost recovery tools in place -- thirteen with revenue decoupling and eighteen with lost revenue adjustments. That adds five new states to the list.
In addition, 28 states...
Performance incentives and cost-recovery mechanisms abound.
STEPHEN LACEY: JULY 25, 2013
Ratepayer-funded utility programs dominate the energy efficiency landscape in the U.S.
From 2006 to 2008, these programs more than doubled from $2 billion to $4.8 billion. And according to the Lawrence Berkeley National Laboratory, these programs are expected to double again by 2025.
In order to encourage utilities to invest in efficiency, various states have measures in place to guarantee power companies don't have a disincentive to encourage less energy use. These typically come in two forms: fixed-cost recovery mechanisms like revenue decoupling, and performance incentives like shared savings that reward utilities that meet their efficiency goals.
In the last year, a number of states have added these regulatory structures, ensuring that a majority now have utility-friendly policies to boost efficiency programs. According to a new report from the Edison Foundation's Institute for Electric Efficiency (IEE), 31 states now have cost recovery tools in place -- thirteen with revenue decoupling and eighteen with lost revenue adjustments. That adds five new states to the list.
In addition, 28 states...
http://www.greentechmedia.com/articles/read/states-pick-up-the-pace-in-energy-efficiency?utm_source=Daily&utm_medium=Headline&utm_campaign=GTMDaily
