Financial Analysis of Incentive Mechanisms to Promote Energy Efficiency: Case Study of a Prototypical Southwest Utility

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The object of this report is to provide an analytic framework and tools that can be used by regulators and policymakers to assess the impacts of alternative energy efficiency incentives on utilities and consumers. The report presents a model of a typical electric investor-owned utility in the southwestern United States attempting to determine the best energy-efficiency portfolio options to pursue.