ACEEE | Carrots for Utilities: Providing Financial Returns for Utility Investments in Energy Efficiency

ACEEE | Carrots for Utilities: Providing Financial Returns for Utility Investments in Energy Efficiency: "This report examines state experiences with shareholder financial incentives designed to encourage investor-owned utilities to provide energy efficiency programs that reduce customer energy use. This is an important reform because traditional regulation provides significant opportunities for earnings from supply-side investment, but historically has provided no financial incentive for utilities to help customers reduce energy use. This report presents a framework for understanding recent developments and experiences in this area, and is intended as a resource for policymakers, regulators, utilities, and other interested parties."