Carrots and sticks: A comprehensive business model for the successful achievement of energy efficiency resource standards

Carrots and sticks: A comprehensive business model for the successful achievement of energy efficiency resource standards

TitleCarrots and sticks: A comprehensive business model for the successful achievement of energy efficiency resource standards
Publication TypeJournal Article
Year of Publication2011
AuthorsAndrew Satchwell, Peter Cappers, Charles A Goldman
JournalUtilities Policy
Volume19
218
Issue4
Pagination218-225
Date Published12/2011
Abstract

U.S. utilities face significant financial disincentives under traditional regulation in aggressively pursuing cost-effective energy efficiency. Regulators are considering some combination of mandated goals and alternative utility business model components to align the utility’s business and financial interests with state and federal energy efficiency public policy goals. We analyze the financial impacts of an Energy Efficiency Resource Standard on an Arizona electric utility using a pro-forma utility financial model, including impacts on utility earnings, ROE, customer bills and rates. We demonstrate how a viable business model can be designed to improve the business case while retaining sizable benefits for utility customers.

URLhttps://www.sciencedirect.com/science/article/abs/pii/S0957178711000531
DOI10.1016/j.jup.2011.07.004