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© The
Regulatory Assistance Project
1993-Present
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RAP Publications
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RAP has been publishing policy and research papers since its inception in 1992. We regularly publish our IssuesLetters on new or developing topics of interest to public utility regulators. In addition to our IssuesLetters, we publish a variety of significant papers analyzing and developing cutting edge regulatory policy. To find a document in our library of papers use our Search By Topic page or you can search for any word or phrase in our library by using our Full Text Search.
Our most recent significant papers include:
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Who Slices the Pie in the Sky - State and Federal Roles
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Author(s): Richard Cowart Date: January 2008 |
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File Type/Size: PDF 169 KB |
Document Summary:
This is a paper written by Richard Cowart on what role states should play in allocating GHG allowances and distributing carbon auction revenues.
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Energy Efficiency Policy Toolkit
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Author(s): Cheryl Harrington, Cathie Murray & Liz Baldwin Date: January 2007 |
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File Type/Size: PDF 507 KB |
Document Summary:
In light of the higher natural gas prices and electricity prices occurring in their states,
many electric and gas utility regulators have a growing interest in energy efficiency and
renewable energy and in encouraging the use of distributed generation. These clean
energy resources have high value in meeting the need for affordable, reliable generation,
transmission and distribution for both electricity and natural gas, but they require careful
policy groundwork to assure their development.
Rather than address why policy makers might want to develop more aggressive clean
energy policies, this Energy Efficiency Policy Toolkit assumes you are already interested.
It sets out a compendium of tried and true regulatory policies that will advance the
development of cost-effective clean energy within both the electric and gas systems in
your state. We examine policy options in four primary areas: energy efficiency,
renewable energy, distributed resources and rate design. We also discuss the key
importance of regulatory financial incentives which play an essential role in either
discouraging or supporting the development of clean energy, particularly energy
efficiency.
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Energy Efficiency Policy Tookit
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Author(s): Cheryl Harrington, Catherine Murray, Liz Baldwin Date: November 2006 |
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File Type/Size: PDF 591 KB |
Document Summary:
In light of the higher natural gas prices and electricity prices occurring in their states,
many electric and gas utility regulators have a growing interest in energy efficiency and
renewable energy and in encouraging the use of distributed generation. These clean
energy resources have high value in meeting the need for affordable, reliable generation,
transmission and distribution for both electricity and natural gas, but they require careful
policy groundwork to assure their development.
Rather than address why policy makers might want to develop more aggressive clean
energy policies, this Energy Efficiency Policy Toolkit assumes you are already interested.
It sets out a compendium of tried and true regulatory policies that will advance the
development of cost-effective clean energy within both the electric and gas systems in
your state. We examine policy options in four primary areas: energy efficiency,
renewable energy, distributed resources and rate design. We also discuss the key
importance of regulatory financial incentives which play an essential role in either
discouraging or supporting the development of clean energy, particularly energy
efficiency.
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Nevada Electric Resource Long-range Planning Survey 2006
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Author(s): Liz Baldwin Date: May 2006 |
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File Type/Size: PDF 127 KB |
Document Summary:
Nevada has two major electric utilities, Nevada Power and Sierra Pacific. Both are
owned by Sierra Pacific Resources. The utilities are required to file a resource plan
every 3 years by staute. Regular interveners include the Commission’s Staff and the
Bureau of Consumer Protection, a consumer advocacy group. Other interveners may
include large industrial customers (such as large hotel/casinos and gold mines), the
Southern Nevada Water Authority, and independent power producers. Environmental
groups intervene infrequently.
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Delaware Electric Resource Long-range Planning Survey: Transmission and Distribution
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Author(s): Liz Baldwin Date: May 2006 |
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File Type/Size: PDF 125 KB |
Document Summary:
EDCs are required to prepare distribution reliability and load plans (“Five Year
Plans”). While not mandated, PJM provides reliability/load/economic planning
for transmission.
New legislation will also require EDCs to provide Integrated Resource Plans
every two years for PSC approval. The legislation arose in response to high
electricity prices. The rate freeze that was instated as part of deregulation had
been set to expire on May 1, 2006, at which time the majority of Delaware
customers would have faced rate hikes of 50-60%. The new legislation is the
legislature’s response to the situation. The IRP process will be an integrated
process that governs how the IOU will meet their standard offer service
obligations and meet their load requirements. Rules may be forthcoming by spring
of 2007.
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Meeting China's Energy Efficiency Goals Means China Needs to Start Building Efficiency Power Plants (EPP)
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Author(s): David Moskovitz Date: April 2006 |
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File Type/Size: PDF 89 KB |
Document Summary:
China’s leaders have set an ambitious goal of reducing the country’s energy use per
dollar of GDP by 20%. In doing so, leaders have recognized that current energy trends
and the related environmental consequences are not sustainable and not consistent with
China’s long-term interests. Increased energy efficiency is now a top priority for China.
Meeting the ambitious goals will require a range of specific actions at the central,
provincial, and local levels. A new concept called the “Efficiency Power Plant” (EPP)
provides a way to address these barriers and make good progress in meeting China’s 20%
efficiency improvement goal.
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Welcome
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RAP is committed to fostering regulatory and market policies for the electric industry that encourage economic efficiency, protect environmental quality, assure system reliability, and allocate system benefits fairly to all customers. |
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Introduction to RAP
The Regulatory Assistance Project (RAP) is a non-profit organization, formed in 1992 by experienced utility regulators, that provides research, analysis, and educational assistance to public officials on electric utility regulation.
RAP workshops cover a wide range of topics including electric utility restructuring, power sector reform, renewable resource development, the development of efficient markets, performance-based regulation, demand-side management, and green pricing. RAP also provides regulators with technical assistance, training, and policy research and development. RAP has worked with public utility regulators and energy officials in 45 states, Washington D.C., Brazil, India, Namibia, China, Egypt, and a number of other countries.
RAP principals and associates have also written and spoken extensively on energy policy and regulation. RAP Issuesletters, published quarterly, and RAP’s many in-depth reports and conference presentations provide serious and thoughtful discussion of cutting-edge issues in industry restructuring (e.g. market power, stranded costs, system benefits charges, customer choice, and consumer protection), and other current topics (e.g. resource portfolio management, policies for distributed generation and demand-side resources, distribution system regulation, reliability and risk management, rate design, electrical energy security, and environmental protection).
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United States Activities
Vermont Mediated Modeling
The Vermont Mediated Modeling Project is a collaborative process in which a broad group of stakeholders are working together to build a system dynamics model of the Vermont electric industry. With that model, the various stakeholders hope to draw insights on the distinct choices for future electric resource investments to serve Vermont's needs. RAP is an advisor to the process. Hear more about it here.
RAP Supports EPA Partnership States
The Regulatory Assistance Project is working with the US Environmental Protection Agency to support New Jersey, New Mexico, Arkansas and Minnesota in looking at energy efficiency. Details about the Arkansas docket can be found here.
Integrated Resource Planning State Surveys
The Regulatory Assistance Project is in the process of conducting State surveys on Electric Resource Long-range Planning. As state surveys are completed, they will be posted on the IRP Survey Feature Page.
Mid-Atlantic Distributed Resources Initiative
The Mid-Atlantic Distributed Resources Initiative is a many-stakeholder collaborative process created to promote and accelerate cost-effective deployment of distributed resources in the Mid-Atlantic States. RAP is facilitating the project, and is providing technical assistance on several issues, including regulatory and environmental policy. MADRI meets roughly once every five to six weeks. Details on the MADRI process are on its website.
Regional Greenhouse Gas Initiative
RAP is participating in the Regional Greenhouse Gas Initiative (RGGI), convened by the Governors of nine Northeast states, to create a regional cap-and-trade program for greenhouse gas emissions from the region's power sector. RAP has been appointed to the Resources Panel advising the RGGI stakeholder process, and will be working on emissions allocations, regulatory and power market policies, and policy coordination with the region's utility regulators. .
Western Multi-State Entities Project
RAP assisted the Western Interstate
Energy Board (WIEB) in evaluating the form and scope of potential multi-state
entities designed to coordinate and integrate planning and operation of the
electric grid throughout the Western interconnection. This project was
managed by RAP Associate Bob Anderson. This work was conducted under a
contract with Lawrence Berkeley National Laboratories and funded by US DOE.
New England Demand Response Initiative
RAP recently completed work on the New England Demand Response
Initiative (NEDRI). NEDRI addressed the need for integrating demand response
programs into the ISO-New England operational and planning processes. Much
of the work of NEDRI has been embraced by the FERC. More information is available
on our feature page for New
England Demand Response Iniative.
Transmission Siting Initiative
RAP is assisting the National Council on Electric Policy with an assessment of existing transmission siting processes and proposals to improve siting regulations. The Council is made up of state legislators, state utility regulators, and state energy office directors. Staff from U.S. DOE, U.S. EPA and FERC also participate.
The Transmission Siting Initiative is designed to determine more effective transmission siting processes for the U.S., and promote and facilitate their implementation. By effective, we mean increasing the likelihood that needed projects will be built. Areas of inquiry will include: state regulatory processes, utility planning and project development processes, the process of multiple states collaborating in siting matters, system planning and the development of alternative solutions to system needs.
RAP is particularly interested in this initiative because it provides the opportunity to make wholesale power markets work more effectively, as well as the opportunity to value all electric system resources more accurately, including demand side and distributed resources. There will be three regional workshops for transmission siting stakeholders during the second quarter of 2004, which will be attended by invitation. For more information, contact Richard Sedano or check the website of the National Council on Electric Policy.
Advising Rhode Island PUC on Energy Efficiency Incentives
Aligning the incentives of the utility with the public interest is an objective of many state regulators. Recently the Rhode Island PUC became interested in developing a system of incentives that would cause energy efficiency program outcomes to be more in line with the commission's priorities and expectations.
RAP was hired in the Fall of 2002 to advise the PUC and Narragansett Electric in a docket on this subject. RAP assisted the utility in developing new performance indicators that would measure energy efficiency performance in ways valuable to both the utility and the regulator. A new set of performance indicators and incentives is now in place. During 2004, the incentive system will be evaluated by the PUC, with the continued involvement of RAP. See the Rhode Island documents on our Performance Based Regulation page, or contact Richard Sedano for more information.
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International Activities
Canadian Association of Members of Public Utility Tribunals
RAP is working with Summit Blue Consulting on a project to provide insight to Canadian utility regulators on energy efficiency and demand response. RAP and Summit Blue are doing extensive interviews with US and Canadian experts in and out of government, and will provide insight into how to determine appropriate objectives for these resources.
RAP Assisting China's SERC
RAP is continuing its participation in The Energy Foundation's China Sustainable Energy Program in Beijing. With an expanded presence on the ground, we are working closely with Chinese officials assisting in the establishment of a new electric regulator. In September, we conducted a workshop for the State Electric Regulatory Commission (SERC) in Beijing. David Moskovitz of RAP is pictured here with Vice Premier Huang Ju who attended the workshop.
Market Transition Review Provided to Namibia
On behalf of US AID Regional Center for Southern Africa, RAP has delivered a comprehensive review of Namibia's effort to transition to a competitive electric market. Highlights include an analysis of single-buyer market options and the implementation of an integrated resource planning process. Based on the review, the Electricity Control Board of Namibia intends to conduct a stakeholder process intended to facilitate adoption of the proposed rule.
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What's New
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Recent Events
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Upcoming Events
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May 2008
PJM Demand Response Symposium
May 12-13, 2008
BWI
Oklahoma Corporation Commission Technical Conference on Energy Efficiency
May 7-8, 2008
NGA State Summit on Clean Energy
May 6, 2008
Rich Sedano will be speaking on energy efficiency
April 2008
Hawaii PUC Workshops on Policies to Support Energy Efficiency
April 21-25, 2008
Rich Sedano and Wayne Shirley joined Alison Silverstein and Jenn Decesaro and delivered training to the PUC and stakeholders
Maine Energy Summit
April 3, 2008
Rick Weston presented on energy efficiency.
ACEEE Market Transformation Meeting
April 1-2, 2008
Rich Cowart spoke about climate change policy.
March 2008
New England Workshop on Energy Efficiency
March 27, 2008
Sponsored by NESCAUM, Rich Sedano provided a framing presentation to set up the day's discussion by state energy and environment officials
Kansas Corporation Commission Workshop on Energy Efficiency
March 25-26, 2008
Rich Sedano is working with the Kansas commission to educate stakeholders about implementing energy efficiency. Benefit/cost and EM&V are featured. See presentations at raponline.org -- find "Kansas" in the dropdown menu.
South Dakota Small Generation Interconnection Workshop
March 18-19, 2008
Wayne Shirly is working with the South Dakota Commission
Midwest Demand Resources Initiative
March 7, 2008
General Meeting, Chicago
Mid-Atlantic Distributed Resource Initiative
March 4, 2008
Working Group Meeting in Philadelphia. Discussion of PJM DR Roadmap, Energy Efficiency in Wholesale Markets, and addressing a prospective eastern PJM capacity shortage. See www.energetics.com/madri for information.
February 2008
Pew Conference on State Climate Change Policies
February 24-26, 2008
RC attended the Pew Conference on State Climate Change Policies.
NARUC
February 17-20, 2008
Rich Cowart participated with the Clean Coal Task Force. Rick Weston will be participated with the International Committee in a discussion about China. Rich Sedano participated in a pre-meeting workshop on energy efficiency. Wayne Shirley and David Moskovitz also participated.
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May 2008
Empower Maryland Implementation Public Conference with the MD PSC
May 29-30, 2008
June 2008
National Town Meeting on Demand Response
June 2-3, 2008
Rich Sedano will be discussing regional demand response processes underway
Oklahoma Corporation Commission Technical Conference on Energy Efficiency
June 4-5, 2008
MARC Meeting, Oklahoma City
June 16-18, 2008
Rich Sedano is speaking about resource alternatives to generation
Oklahoma Corporation Commission Technical Conference on Energy Efficiency
June 24-25, 2008
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New Issues and Topics
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National Action Plan for Energy Efficiency
RAP is an advisor to this project co-sponsored by the US DOE and US EPA which will be developed by a diverse group of stakeholders. "The goal of the National Action Plan for Energy Efficiency development is an aggressive new national commitment to energy efficiency by electric and natural gas utilities and partner organizations across the United States."
Vermont Mediated Modeling
The Vermont Mediated Modeling Project is a collaborative process in which a broad group of stakeholders are working together to build a system dynamics model of the Vermont electric industry. With that model, the various stakeholders hope to draw insights on the distinct choices for future electric resource investments to serve Vermont's needs. RAP is an advisor to the process. Hear more about it.
Paper on Renewable Energy and Energy Efficiency Published
Electric Energy Efficiency and Renewable Energy in New England: An Assessment of Existing Policies and Prospects for the Future by Richard Sedano has been published with financial support from the US EPA, and modeling and policy assistance from Synapse Energy Economics. This report examines and quantifies the positive effects energy efficiency and renewable energy have on the general economy, the environment and energy security in New England. Interest was shown in these topics by a resolution of the New England Governors and the Eastern Canadian Premiers in 2003, and in response the Regulatory Assistance Project produced this report.
Mid-Atlantic Distributed Resources Initiative
The Mid-Atlantic Distributed Resources Initiative is a many-stakeholder collaborative process created to promote and accelerate cost-effective deployment of distributed resources in the Mid-Atlantic States. RAP is facilitating the project, and is providing technical assistance on several issues, including regulatory and environmental policy. MADRI meets roughly once every five to six weeks. Details on the MADRI process are on its website.
Transmission Siting Project Primer Published
Rich Sedano and Matthew Brown have collaborated to write
Electricity Transmission: A Primer. The publication was prepared for the National Council on Electric Policy as part of a project to assist the National Council with an assessment of existing transmission siting processes and proposals to improve siting regulations. The primer is intended to help policymakers understand the physics, economics and policies that influence and govern the electric transmission system. Also included undere the scope of this project will be three regional workshops on transmission siting; sample transmission siting legislation produced by NCSL; sample transmission application produced by NARUC; and a final report with recommendations for improvements.
Regional Greenhouse Gas Initiative
RAP is participating in the Regional Greenhouse Gas Initiative (RGGI), convened by the Governors of nine Northeast states, to create a regional cap-and-trade program for greenhouse gas emissions from the region's power sector. RAP has been appointed to the Resources Panel advising the RGGI stakeholder process, and will be working on emissions allocations, regulatory and power market policies, and policy coordination with the region's utility regulators.
EPRI Publishes RAP paper on Demand Response
Revealing the Value of Demand Response: Regulatory & Market Options
Results of a new study sponsored by EPRI explore market and regulatory options for correcting some of these failures. In doing so, the study recognizes the critical role that regulation plays in assuring that the competitive process works, as it should, to the benefit of all. In particular, the new report examines ways to better integrate demand response into electricity markets at both the wholesale and retail levels. More details about how to order Revealing the Value of Demand Response: Regulatory & Market Options can be found on the EPRI website.
Air Emissions Standards Progress in NE States
RAP has been working with environmental regulators in several northeastern states -- Connecticut, Massachusetts, Rhode Island, New York, Maine, and Delaware -- as they develop rules for controlling the air emissions of distributed generation facilities. In most cases, the states are considering adoption of regulations based on a model rule that RAP developed during a two-year national stakeholder process.
State Distributed Generation Policy
RAP is working with the National Association of State Energy Officials on a project to better characterize policies that assist or prevent deployment of distributed generation, and to develop a tool for states to quickly assess the compatibility of their policies with distributed generation development.
Energy Efficiency Administration in California
RAP is working with the California Public Utilities Commission in its effort to settle on how energy efficiency program responsibilities, including overall administration, will be assigned.
National Commission on Energy Policy
RAP is assisting the National Commission on Energy Policy in its consideration of national electricity policies, with a particular focus on consumer protection and consumer-oriented resource supply issues.
Assistance to Efficiency Vermont
RAP is assisting Vermont's unique Efficiency Utility to provide information on the "efficiency utility" concept, structure, and operations to decisionmakers in other jurisdictions interested in creating new mechanisms to deliver efficiency services. RAP has participated in briefings for officials in New Jersey, the District of Columbia, New Brunswick, and California on these topics.
Demand Response Technical Assistance
In follow-up to the RAP-led New England Demand Response Initiative (NEDRI), the US DOE has asked RAP to provide technical assistance to PUCs, regional ISOs and power pools, state legislatures and others on the policy recommendations developed by the NEDRI stakeholders. Assistance activities so far have occurred in Maine, Connecticut, Vermont, and for working groups within three regional power pools: NE-ISO, the NYISO, and PJM.
Resource Portfolio Management Emerging as New Standard
Faced with increasing volatility in supply costs, both
vertically integrated utilities and providers of default service must
utilize portfolio management theory to mitigate risks. Regulators face
the challenge of developing a new prudent man standard that incorporates
risk-management as a central theme. RAP has been a leader in developing
portfolio management as a regulatory standard for the electric sector.
For more information see our feature page on Retail
Resource Procurement and Portfolio Management.
Who Should Deliver Ratepayer Funded Energy Efficiency?
The success of ratepayer funded energy efficiency programs depends more on clear and consistent commitment of policy makers and regulators than on the administrative structure employed. Either utility administration or administration by a third party non-governmental organization can work well. State agency administration is generally a weaker third choice. For the full report, see Who Should Deliver Ratepayer Funded Energy Efficiency?. For more on Energy Efficiency, see our feature page on Energy Efficiency, Demand-side Resources and Demand Response.
Emissions Standards for Distributed Generation
Innovations in technology, changes in the economics of the electric industry and a variety of regulatory reforms have combined to create new opportunities for small-scale, distributed generation (DG), offering additional ways to capture production cost savings and other benefits. With these opportunites come challenges. For air regulators, DG raises particular concerns because diesel and natural gas comubstions make the lion's share of installations. If DG is to benefit electric systems across the country, states will need tackle the emissions question head on.
Although developers may rankle at the idea of regulation, far more frustrating to them woud be a hodgpodge of inconsistent and even incompatibale rules. In the long run, the industry, the electric system and the environment will be better served by a set of like rules across states and regions. Approaches and solutions to these issues are discussed in our IssuesLetter: Output-Based Emissions Standards for Distributed Generation. For more on the collaboratve
process and its work product and publications see our feature page on the Distributed Resources Emissions Collaborative.
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RAP Presentations
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Many of the presentations made by RAP Principals at conferences and workshops are available for viewing and downloading in PDF format. To find a presentation in our library use our Search By Topic page or you can search for any word or phrase in our library by using our Full Text Search.
Our most recent presentations are listed below:
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Revenue Per Customer Decoupling Spreadsheet
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| Author(s): Wayne Shirley Date: April 2008 |
| File Type/Size: XLS 200 KB |
Document Summary:
This spreadsheet demonstrates the revenue per customer method of decoupling. This file was updated on April 24 by changing some labels to better reflect the nature of the calculations. Specifically, references to "forecast" items were changed to "Post Rate Case" items.
This spreadsheet was presented to the Hawaii Clean Energy Initiative Workshops, April 21-25, 2008.
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Utility Incentives and Disincentives
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| Author(s): Wayne Shirley Date: April 2008 |
| File Type/Size: PDF 301 KB |
Document Summary:
This a presentation by Wayne Shirley to the Hawaii Clean Energy Initiative Workshop in Honolulu, April 21-25. It addresses issues relating utilities' throughput incentives, decoupling revenues from sales and approaches for positive incentives to support energy efficiency.
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Regional Cooperation to Promote Energy Efficiency in New England
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| Author(s): Richard Sedano Date: March 2008 |
| File Type/Size: PDF 106 KB |
Document Summary:
Presentation by Richard Sedano at the NESCAUM meeting on Regional Strategies for Advancing Energy Efficiency in the Northeast. The presentation contributed to framing the discussion of state energy and environment officials.
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Benefit Costs Test for Energy Efficiency
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| Author(s): Wayne Shirley Date: March 2008 |
| File Type/Size: PDF 89 KB |
Document Summary:
Presentation by Wayne Shirley at the Kansas Corporation Commission Workshop on Energy Efficiency.
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Public Consent and Large Asset Permitting
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| Author(s): Richard Sedano Date: October 2007 |
| File Type/Size: PDF 402 KB |
Document Summary:
Presentation by Richard Sedano at the Forum of the Federations and Queen's University Institute for Energy and Environmental Policy Conference Good Governance and the North America Electricity Sector
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