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Related: About this forumStudy 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.
[/font][/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.
[/font][/font]
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Study finds disincentives to energy efficiency can be fixed (Original Post)
OKIsItJustMe
Jun 2013
OP
Mopar151
(9,983 posts)1. Currently, efficency is the cheapest way to build generating capacity n/t
NYC_SKP
(68,644 posts)2. Post Enron, California has implemented decoupling. It's mentioned in the article.
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 dont 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.
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.
pscot
(21,024 posts)3. I thought it was
all about maintainng the shareholder's dividend.