| ID | 097211 |
| Title Proper | Financial impact of energy efficiency under a federal combined efficiency and renewable electricity standard |
| Other Title Information | case study of a Kansas super-utility |
| Language | ENG |
| Author | Cappers, Peter ; Goldman, Charles |
| Publication | 2010. |
| Summary / Abstract (Note) | Historically, local, state and federal policies have separately promoted the generation of electricity from renewable technologies and the pursuit of energy efficiency to help mitigate the detrimental effects of global climate change and foster energy independence. Federal policymakers are currently considering and several states have enacted a combined efficiency and renewable electricity standard which proponents argue provides a comprehensive approach with greater flexibility and at lower cost. We examine the financial impacts on various stakeholders from alternative compliance strategies with a Combined Efficiency and Renewable Electricity Standard (CERES) using a case study approach for utilities in Kansas. Our results suggest that an investor-owned utility is likely to pursue the most lucrative compliance strategy for its shareholders-one that under-invests in energy efficiency resources. If a business model for energy efficiency inclusive of both a lost fixed cost recovery mechanism and a shareholder incentive mechanism is implemented, our analysis indicates that an investor-owned utility would be more willing to pursue energy efficiency as a lower-cost CERES compliance strategy. Absent implementing such a regulatory mechanism, separate energy efficiency and renewable portfolio standards would improve the likelihood of reducing reliance on fossil fuels at least-cost through the increased pursuit of energy efficiency. |
| `In' analytical Note | Energy Policy Vol. 38, No. 8; Aug 2010: p. 3998-4010 |
| Journal Source | Energy Policy Vol. 38, No. 8; Aug 2010: p. 3998-4010 |
| Key Words | Energy Efficiency ; Renewable Energy ; Public Policy |