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OKIsItJustMe

(19,938 posts)
Tue Jun 4, 2013, 10:12 PM Jun 2013

Study finds disincentives to energy efficiency can be fixed

http://oregonstate.edu/ua/ncs/archives/2013/jun/study-finds-disincentives-energy-efficiency-can-be-fixed
[font face=Serif][font size=5]Study finds disincentives to energy efficiency can be fixed[/font]

06/04/2013

[font size=3]CORVALLIS, Ore. – A new study finds that utilities aren't rewarded for adopting energy efficiency programs, and that reforms are needed to make energy efficiency as attractive as renewables.

The article, just published in the current issue of Environmental Law, examines key differences between energy efficiency projects and renewable resources. Author Inara Scott, an assistant professor at Oregon State University, outlines ways to increase the amount of energy utilities save each year through efficiency programs.

“Right now, the system actually discourages utilities from building programs to increase efficiency,” she said. “We need to start addressing efficiency as we do renewable energy – by looking at it systemically and removing the barriers.”

Scott spent a decade as a lawyer specializing in energy and regulatory law. Her research in the College of Business centers on the transformation of utility systems, clean energy, energy efficiency, and utility regulation.

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Study finds disincentives to energy efficiency can be fixed (Original Post) OKIsItJustMe Jun 2013 OP
Currently, efficency is the cheapest way to build generating capacity n/t Mopar151 Jun 2013 #1
Post Enron, California has implemented decoupling. It's mentioned in the article. NYC_SKP Jun 2013 #2
I thought it was pscot Jun 2013 #3
 

NYC_SKP

(68,644 posts)
2. Post Enron, California has implemented decoupling. It's mentioned in the article.
Tue Jun 4, 2013, 10:19 PM
Jun 2013
Cost-recovery systems for many investor-owned utilities in the United States are based on an old rate structure model – the more energy that is produced, the higher return for shareholders. “You don’t want to penalize utilities for selling less energy,” Scott said.

Instead, she said, states can use ratemaking mechanisms to decouple the link between utility sales and revenues and establish performance incentives for the adoption of efficiency programs.

“Decoupling mechanisms may add complexity to utility rate structures, but they are essential to eliminating environmentally nonsensical ratemaking models that reward utilities for higher sales and penalize them for efficiency.”
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