One way the utility business works like the rest of the economy is that it sells its products/commodities at a price that is higher than the cost of production, on average. The more utilities sell, the greater their gross profit. This is at odds with utilities’ incentive to save energy with energy efficiency programs. As a result, some utility executives are opposed to energy efficiency programs. That is a short-sighted view but that’s a story for a different day. As a result of this dichotomy, a pricing mechanism known as decoupling has been developed. This NREL paper gives a pretty…
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