Encouraging Efficiency: Policies to Promote Utility Energy Efficiency


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Energy efficiency delivers numerous benefits, including reduced emissions, customers savings, improved comfort, grid resiliency, and lower utility operating costs. Energy efficiency can also be an excellent investment, often returning benefits of $2 or more for each dollar invested.

The traditional regulatory approach, however, links utility income to energy sales and capital investments. This creates a disincentive for utilities to invest in energy efficiency, which reduces energy consumption and potentially utility sales. To address the misalignment of incentives and desired outcomes, states are exploring policies and strategies that reward, rather than penalize, utilities for efficiency investments.

Presenters explore a variety of state policy solutions, including energy efficiency resource standards, revenue decoupling mechanisms and performance incentives.



  • Annie Gilleo, senior manager, State Policy, American Council for an Energy-Efficient Economy. She manages ACEEE's state-based technical assistance activities and conducts research on energy efficiency resource standards, the utility business model, and other state-level policies. | Presentation
  • Ken Hughes, clean energy program manager, New Mexico Energy, Minerals and Natural Resources Department. | Presentation

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