New Report. Utility Incentives Need Regular Regulatory Review.

The report authors: Energy Innovation and the American Council for an Energy-Efficient Economy

Take aways:

• 4 of 5 performance incentive mechanisms successfully reduced energy demand
• 3 successful state incentive programs, VT, TX, & MA, exceeded expectations
• Adjusting incentives based on regulatory reviews helps the whole sale market

Two types of incentives makes successful program:

• % of utility investment in program spending to reduce total peak demand
• + offer customer benefits

Utility Dive | State regulators need cyclical reviews to get the most out of utility performance incentive mechanisms: Report