Performance Incentive Mechanisms for Strategic Demand Reduction

Strategic demand reduction (SDR) programs use energy efficiency and demand response to reduce system costs. Performance incentive mechanisms (PIMs) reward utilities for developing these programs. This report describes the national landscape of existing SDR PIMs, including their design, drivers for developing these incentives, and the resources used to provide SDR. We present seven state case studies and particular lessons for regulators and utilities hoping to find ways to stimulate the market for strategic demand reduction.

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Energy Efficiency and Climate Change Distributed Energy Resources