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Incentive Regulation Topics - Partnerships激励性规制问题的伙伴关系
Incentive Regulation Topics Scott A. Struck, CPA Financial Analysis Division Public Utilities Bureau Illinois Commerce Commission Overview Definition of Incentive Regulation. Discussion of Various Topics and Consideration of Incentive Regulation. Energy Efficiency and Demand Response Programs. Infrastructure Investment and Improvement. Operating Efficiency. * Incentive Regulation - Definition Incentive Regulation: Incentive regulation is use of ratemaking mechanisms that reward or penalize the utility through the adjustment of rates based on utility performance. I would like us to expand our basic definition to include ratemaking mechanisms that promote, or at least reduce barriers to, desired outcomes. This would include things like the following: Revenue Decoupling Riders Feed-in-Tariffs ROR Adders CWIP in Rate Base * Energy Efficiency and Demand Response The Illinois legislature has set targets it requires electric utilities to achieve regarding energy efficiency programs and demand response programs, but limits their implementation to the extent it would cause customer rates to increase above certain levels. This is essentially a renewable portfolio standard approach (RPS). Energy Efficiency Program Targets The Illinois Legislature requires electric utilities to implement cost-effective energy efficiency measures to meet the following environmental annual energy savings goals: 0.2% of energy delivered in the year commencing 1 June, 2008. 0.4% of energy delivered in the year commencing 1 June, 2009. 0.6% of energy delivered in the year commencing 1 June, 2010. 0.8% of energy delivered in the year commencing 1 June, 2011. 1.0% of energy delivered in the year commencing 1 June, 2012. 1.4% of energy delivered in the year commencing 1 June, 2013. 1.8% of energy delivered in the year commencing 1 June, 2014. 2.0% of energy delivered in the year commencing 1 June, 2015 and every year thereafter. * Demand Response Program Targets The Illinois Legislature also require
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