CPUC Creates New Incentive Structure to Further Promote Energy Efficiency

The California Public Utilities Commission (CPUC) adopted new performance incentives to promote energy efficiency goals. The Efficiency Savings and Performance Incentive Mechanism, is designed to motivate utilities to prioritize energy efficiency goals, while protecting ratepayers through necessary cost containment mechanisms. Under the decision the state’s investor-owned utilities will earn incentive awards by meeting or exceeding designated energy efficiency goals in four performance categories: 1) Actual energy savings achieved; 2) A constructive and collaborative effort during the review process associated with evaluation, measurement, and verification; 3) Effective advocacy for the development of new codes and standards both within California and at the Federal level; and, 4) Implementation of non-resource programs of the portfolio through a fixed portfolio management fee.