Tag Archives: evaluation

The promise and pitfalls of shareholder incentives: Lessons from California’s high-stakes test

February 19, 2014 |

 

This post originally appeared on Intelligent Utility.

How many millions of dollars does it take to change a state’s light bulbs?

This sounds like the start of a joke, but for the last seven years, it’s been anything but to California utilities and regulators. The crux of the dispute, which has had stakes in the hundreds of millions of dollars, has been an ambitious—but controversial—shareholder incentive designed to motivate California utilities toward greater energy efficiency.

The policy, called the Risk/Reward Incentive Mechanism, or RRIM, targeted California utilities. However, the concept of a shareholder incentive is one that 20 other states have adopted in recent years. It’s also under discussion at the federal level as part of President Obama’s proposed Race to the Top Energy Efficiency Initiative.

So what can utilities in other states learn from California’s experience? Climate Policy Initiative’s recent analysis, “Raising the Stakes for Energy Efficiency: California’s Risk/Reward Incentive Mechanism,” draws a few lessons that stand out.

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Counting on energy efficiency: climate gains from consistent program data

November 30, 2012 |

 

Most experts agree that one of the most cost-effective places to reduce greenhouse gas emissions is in energy efficiency. Over the years, hundreds of programs have sprung up across the U.S. to encourage businesses and households to use energy more efficiently. These programs — also called demand-side management (DSM) programs — hold real promise for climate mitigation.

It’s good that many, many programs exist. It’s also good that these programs are extensively evaluated. However, as Jeff Deason discusses in more depth, each jurisdiction uses its own measurement and reporting practices, resulting in scattered and inconsistently reported data.

As an organization keen to look across evaluations to find best practices, we find this frustrating. In essence, it’s a classic case of comparing apples to oranges — and sometimes a challenge just to locate those apples and oranges in the first place.

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