CABA Information Series

(IS-2012-126) The Old Model Isn’t Working: Creating the Energy Utility for the 21st Century

This report from the American Council for an Energy Efficient Economy examines the financial deterrents for utilities to invest in energy efficiency programs. The issues are program cost recovery, lost energy sales, and maintaining investment returns for shareholders. The cost for energy savings programs is up to four times less than the cost of supplying that energy. Some costs are treated as expenses or short-term capital projects, or recovered through a customer charge. Some utilities are allowed frequent rate adjustments. Some utilities are offered performance incentives.






















(Adobe PDF File)