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cost recovery

Jun 29
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Lost Revenue Adjustment; One Patch in the Quilt

By Energy Efficiency, Energy Rant One Comment
This week, I dive into something I have wanted to know more about for some time: efficiency program funding mechanisms.  This post is based on a recent paper released by ACEEE, Valuing Efficiency: A Review of Lost Revenue Adjustment Mechanisms. Utilities must be allowed to make enough money to draw required investor capital, debt and equity, to fund their operations.  Energy efficiency programs are funded by ratepayers, one way or another – not out of shareholder charity.  All states with programs have some sort of transparent, although usually incomprehensibly confusing, means for cost recovery or lost revenue recovery. Although the ACEEE…
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Jan 26
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Performance Incentives for Energy Efficiency Programs; Crazy with the Cheese Whiz

By Energy Efficiency, Energy Rant, Utility Stuff No Comments
This report from The Edison Foundation / Institute for Electric Innovation forms the foundation of this week’s Rant.  It includes a summary of utility cost recovery mechanisms, which to this nerd, is an interesting topic. Performance incentives are of particular interest. Why do utilities run programs anyway?  Typically because they have to, either because they are required to exploit lowest-cost resources, or they are assigned goals through a process, the description of which is beyond the scope of this post.  For business, however, smart utilities know when their customers use energy efficiently. It is good for the customer, and what…
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Apr 29
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Cost Recovery for Energy Efficiency Programs – An Ignorant Idea

By Energy Efficiency, Energy Rant One Comment
If you haven’t seen Michaels’ recent self-indulgent video, you might want to do that now.  It is many hours of video shooting reduced to a fine sauce, just under four minutes.  My interview, for example, lasted maybe 45 minutes and maybe 30 seconds of it are included in the video.  One line I’m pleased to have been captured and included was the statement that there is a limitless supply (and immense variety) of learning available in our industry.  One thing I know little about is the guts of the utility business and cost recovery for energy efficiency programs.  So why…
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We talk a lot about energy – from the serious to the satirical.

All things energy. That’s our jam.

We talk a lot about energy – from the serious to the satirical.

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