27 Feb '12, 11am

Ask Pablo: Why Would My Electric Utility Want Me To Use Less Electricity?

Ask Pablo: Why Would My Electric Utility Want Me To Use Less Electricity?

Dear Pablo: My electric utility is always trying to help me find new ways to save electricity. What is their incentive for doing this? Should't they want to sell me more of their product? It seems counter-intuitive, almost like an airline encouraging you to fly less. So why then would a utility company want to encourage energy efficiency? Is it just an attempt at greenwashing? Is it due to some government regulation? Let's find out. Why A Utility Wants You To Conserve In some utility markets there is regulation in place that requires decoupling of revenue and profits. What this means is that utilities have a right to charge consumers for their fixed costs (maintenance, operations, etc.) plus some modest percentage (a guaranteed, fixed profit). If a utility brings in more revenue than allowed it must issue refunds, and if it brings in less the state compensates them for the...

Full article: http://www.treehugger.com/energy-efficiency/ask-pablo-why...

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