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Direct Testimony of Thomas M. Hildebrand - Consumer Advocate ...

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Energy Efficiency<br />

Z2r<br />

* Utility financial incentives<br />

Throughput charges create direct disincentives for utilities to sell less<br />

e Utilities do not earn the same rate <strong>of</strong> return on energy efficiency like<br />

generation, transmission, and distribution<br />

0 Utilities may not be ensured cost recovery or shareholder incentives<br />

Customer rate structures provide delayed reaction by customers<br />

Company policies<br />

Employees rewarded based on capital investment<br />

Resource planning<br />

Planning does not incorporate demand-side resources<br />

0 Misperception that energy is not a reliable resource<br />

Full value <strong>of</strong> efficiency not considered, including reliability, environmental,<br />

risk management and economic benefits<br />

0 Lack <strong>of</strong> awareness on program best practices<br />

9

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