A couple weeks ago, I quickly read this article, Cracking the Code - Aligned Incentives, on EnergyCentral.com. It concerns incentives for high-performance employees, but my read was about incentives for efficiency programs. It applies to that too. Myopic Focus I wrote about short-term focus many times, including last week – if your lips are chapped, stop licking them – short-term gain for longer-term pain. Efficiency portfolio administrators, typically utilities, want long-lived measures, deep energy savings, and instant savings. The demand for instant savings is like harvesting the carrots at day 30 rather than at day 70 maturity. SEM Myopathy As…
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