Background
In September 2007, the Commission passed a decision allowing Investor Owned Utilities (IOUs) to earn shareholder rewards, if programs they managed ranged from marginally successful to very successful. In January 2008, that decision was amended to allow the utilities to keep any interim profits, even if final verification of energy efficiency programs proved the utilities had not actually achieved their goals. The following two decisions constitute the current shareholder reward mechanism:
INTERIM OPINION ON PHASE 1 ISSUES: SHAREHOLDER RISK/REWARD INCENTIVE MECHANISM FOR ENERGY EFFICIENCY PROGRAMS
INTERIM OPINION: JOINT PETITION FOR MODIFICATION OF DECISION 07-09-043
DRA Policy Position on Shareholder Incentives
DRA has been consistently critical of the view that shareholder incentive rewards are an actual vehicle to leverage to maximizing optimal energy savings.
Read more about DRA's policy position on the shareholder risk/reward incentive mechanism:
- DRA's Opening Testimony, part I - May 3, 2007
- DRA's Opening Testimony, part II - May 3, 2007
- DRA's Rebuttal Testimony - May 17, 2007
- DRA's Opening Brief - June 18, 2007
- DRA's Reply Brief - June 27, 2007