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Carrots and Sticks: A Comprehensive Business Model for the Successful Achievement of Energy Efficiency Resource Standards

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A Satchwell, P Cappers, C Goldman
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This report analyzes the financial impacts of an energy efficiency resource standard on a large electric utility using a pro-forma utility financial model, including impacts on utility earnings, customer bills, and electricity rates. The report aims to demonstrate how a viable business model can be designed to improve the business case while retaining sizable ratepayer benefits. While it focuses on a United States utility, lessons learned may apply to other countries looking to significantly increase savings targets that can be achieved from their own utility-administered energy efficiency programs.