Energy efficiency is good for utility customers: it lowers their monthly bills and spurs economic growth. It’s great for the environment, manifesting in lower carbon emissions. Energy efficiency contributes to better air quality, which, in turn, benefits the health of society at large. What it’s not always so great for, however, is helping utilities make money. But it doesn’t have to be this way.
CLEAResult Vice President of Regulatory affairs and Market Development Doug Lewin and the Executive Director at Energy Infrastructure Advocates Peter Kind, the co-authors of last year’s “Lower Spending, Higher Returns” white paper, have teamed up once again. This time to produce a follow-up paper entitled “Creating Customer and Investor Value Through Energy Efficiency,” now available for free download. Taken together, the papers present a way forward for utilities and regulators to better serve their communities by getting the most out of energy efficiency.
We had the opportunity to sit down with Doug and Peter to discuss some of the concepts they address in both papers for this, part one of a two-part installment of Conversations. In this episode, you’ll hear the two discuss the purpose, nature and practical application of performance incentive mechanisms (PIMs), and why they’re necessary for utility growth.