China’s State Grid recently published an excerpt from RAP’s Low-Carbon Power Sector Regulation: Options for China paper in its Demand Side Management Magazine (in Chinese). Drawing on experiences in the U.S., the authors introduce power sector institutions and their functions in the U.S. with a focus on acquisition, pricing, and funding of energy efficiency resources. Because utility revenue erosion is a concern, the authors highlight best practices in revenue regulation and utility incentives in leading states, which can eliminate the utility disincentive to invest in efficiency resources. The authors also summarize the Regional Greenhouse Gas Initiative and how its revenue recycling policy enables more investment on energy efficiency resources.