12 Nov '11, 12am

California's Energy Policy Continues to Provide Valuable Lessons Going Forward

Another component of the success of California’s model is due to the regulatory changes to the private utilities. These changes ensure that the utilities invest in efficiency before costlier and dirtier power plants and are further incentivized to save energy above and beyond their efficiency goals. The California Public Utilities Commission, the state agency that regulates these utilities, took the following actions to align the incentives of the utilities with California’s clean energy goals. For example, the CPUC set aggressive energy and demand saving targets, removed powerful financial disincentives (also known as “decoupling” policies), and created a performance-based incentive that rewards excellent performance, and penalizes poor performers. All these steps make energy efficiency as attractive as other energy resources.

Full article: http://switchboard.nrdc.org/blogs/lettenson/californias_e...

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