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pay for performance

P4P’s Incompatibility with DEI

By Energy Rant No Comments
When I first heard the term “value proposition” years ago, I thought, what the heck does this obtuse phrase mean? In this context, value is a measure of desirability, and proposition means proposal. Google tells us that value proposition is “an innovation, service, or feature intended to make a company or product attractive to customers.” Oh, you mean selling point: “a feature of a product for sale that makes it attractive to customers.” Wikipedia adds another term, “In marketing, the unique selling proposition, also called the unique selling point or the unique value proposition in the business model canvas, is…
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pay for performance

THE Successful Model for Pay for Performance

By Energy Rant No Comments
Livin' it Up in Hotel California I’ve written about pay for performance (P4P) programs no less than six times in this blog. I’ll start with a recap of those posts and move the ball forward once again. We’re well within field goal range! In Tooling Pay for Performance, I wrote that energy models and dashboards with regression models showing savings performance or lack thereof provide the following Leatherman-like benefits. It provides leverage with visual evidence, so customer stakeholders do more and climb higher. It’s a vise-grip to maintain what was accomplished. It’s a hammer to “persuade” folks. It’s a screwdriver…
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Stifling Impacts of Jurassic Evaluation Dogma

By Energy Rant One Comment
If efficiency programs were telephones, the evaluation community would still be using wall-mounted analog dial-ups rather than the iPhone. Yes, I’m going to tell you why programs are designed to be evaluated and not to be effective, part 2, herein. The following is the list of flaws in demand-side management theory, as presented last week. Efficiency must cost more than inefficiency Building energy codes are sacrosanct Efficiency has to be the primary factor in customer decision making Customers must “get their money back” The unfamiliar get fifty cents on the dollar Immortality is fantasy Last week we covered the first…
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Stop Conforming to Waste

By Energy Rant 4 Comments
Two weeks ago, I wrote that efficiency programs are designed to be evaluated. They are not designed to be effective. That quote, or paraphrase, came from the great Val Jensen, Exelon’s Senior VP of Strategy and Policy, as spoken at AESP’s 2019 Annual Conference. Val is great because he is genuine, authentic, and tells it like it is, at least as far as a utility spokesperson can take it. I’d love to hear him if we could remove his utility filter. That would be fantastic. There would be sufficient material for thousands of Rants. Like many things with which I…
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Prospects for Peril in Pay for Performance

By Energy Rant 2 Comments
This week, we are continuing the discussion from last week’s Pay 4 Performance Sequel post. There is a sequel to the sequel? Last week’s sequel referenced the first attempts at P4P programs, which were delivered around the turn of the century in response to the utility deregulation craze. This post takes us a few steps further. More Issues to Slay This post describes why the Energy Service Company (ESCO) model failed and the differences between Energy Service Companies (ESCOs) and modern-day program implementation contractors. Early P4P programs were designed for ESCOs, while today’s are targeted for implementers. The differences pose…
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