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Balancing shareholder and customer interests in incentive rate making

Journal Article · · Electricity Journal; (USA)
The regulatory community believes that there is far more economic potential for demand-side management and efficiency improvements than is currently envisioned and being pursued by utilities. A system of rewards for utility efficiency investments includes elements of customer equity, lost-revenue recovery, and an exponential incentive return for shareholders. To encourage greater utility investment in energy efficiency, we may need to make the profit on a kilowatt-hour saved equal or greater than profit on a kilowatt-hour consumed. This article focuses on a three-part proposal devised to encourage utilities to channel capital into lower cost efficiency investments. 4 tabs.
OSTI ID:
7174606
Journal Information:
Electricity Journal; (USA), Journal Name: Electricity Journal; (USA) Vol. 2:10; ISSN ELEJE; ISSN 1040-6190
Country of Publication:
United States
Language:
English

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