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U.S. Department of Energy
Office of Scientific and Technical Information

Metrics for measuring performance of market transformation initiatives

Conference ·
OSTI ID:20001766
Regulators have traditionally rewarded utility efficiency programs based on energy and demand savings. Now, many regulators are encouraging utilities and other program administrators to save energy by transforming markets. Prior to achieving sustainable market transformation, the program administrators often must take actions to understand the markets, establish baselines for success, reduce market barriers, build alliances, and build market momentum. Because these activities often precede savings, year-by-year measurement of savings can be an inappropriate measure of near-term success. Because ultimate success in transforming markets is defined in terms of sustainable changes in market structure and practice, traditional measures of success can also be misleading as initiatives reach maturity. This paper reviews early efforts in Massachusetts to develop metrics, or yardsticks, to gauge regulatory rewards for utility market transformation initiatives. From experience in multiparty negotiations, the authors review options for metrics based alternatively on market effects, outcomes, and good faith implementation. Additionally, alternative approaches are explored, based on end-results, interim results, and initial results. The political and practical constraints are described which have thus far led to a preference for one-year metrics, based primarily on good faith implementation. Strategies are offered for developing useful metrics which might be acceptable to regulators, advocates, and program administrators. Finally, they emphasize that the use of market transformation performance metrics is in its infancy. Both regulators and program administrators are encouraged to advance into this area with an experimental mind-set; don't put all the money on one horse until there's more of a track record.
Research Organization:
Pacific Energy Associates, Inc., Portland, OR (US)
OSTI ID:
20001766
Report Number(s):
CONF-980815--
Country of Publication:
United States
Language:
English