Energy Efficiency Shareholder Incentive Mechanism

The Efficiency Savings and Performance Incentive (ESPI) mechanism was adopted on September 5, 2013 in D.13-09-023  The ESPI awards the Investor Owed UtiIities (IOUs) for performance in both non-resource and resource activities, as follows:

  1.  Energy Efficiency Resource Savings:  A performance award for ex-ante locked down and ex-post verified net lifecycle resource programs (energy efficiency programs that are intended to achieve and report quantified energy savings) energy savings measured in MW, GWh and MMTh.
  2. Ex-Ante Review (EAR) Process Performance:  A performance award for IOUs ex-ante review conformance.
  3. Codes and Standards (C&S):  A management fee award for the IOUs advocacy of codes and standards.
  4. Non-Resource Programs:  A management fee award for implementing non-resource programs (an energy efficiency program that has no directly attributed energy saving but the programs supports the energy efficiency portfolio through activities such as marketing or improved access to training and education.)

2018 References

Final 2017 Uncertain Measure List

2017 References (2015 Ex-Post and 2016 Ex-Ante):

Guidelines for the 2017 AL Submission

2016 ESPI Earning Coefficients and Caps

Final 2016 Uncertain Measure List

Final 2015 Uncertain Measure List

1.a. 2015 Ex-Post Savings Award

1.b. 2016 Ex-Ante Savings Award

2. 2016 Ex-Ante Review Performance

3 & 4. 2016 Codes & Standards and Non-Resource Management Fee


2016 References (2014 Ex-Post and 2015 Ex-Ante):

2016 (2014 ex-post, 2015 ex-ante) ESPI Resolution

1.a. 2014 Ex-Post Savings Award

1.b. 2015 Ex-Ante ESPI Savings Award

2. 2015 Ex-Ante Review Performance

3 & 4. 2015 Codes & Standards and Non-Resource Management Fee

Guidelines for the 2016 AL Submission

2015 ESPI Earning Coefficients and Caps

Final 2015 Uncertain Measure List

Draft Documents:

2015 References

Legislative History

Rulemaking (R.) 12-01-005 – Incentive Mechanism – continued implementation of reforms to the incentive mechanism as a successor docket to R.09-01-019. Under this Rulemaking, the 2010-12 and 2013-14 incentive mechanisms were adopted in D.12-12-032 and D.13-09-023, respectively.

In D.11-12-036, the Commission adopted 2009 Incentive earnings awards.

In D.12-12-032, the Commission approved a 2010-12 incentive mechanism to award the utilities with a management fee equal to 5% of actual energy efficiency portfolio expenditures plus a performance bonus of up to an additional 1% of portfolio expenditures for conformance with the Commission-adopted ex ante review requirements.

The Commission closed R.12-01-005 with the approval of D.13-09-023.

R.09-01-019 - Risk/Reward Incentive Mechanism (RRIM) - In D.07-09-043, the Commission authorized a RRIM, under which utilities would be rewarded/penalized based on evaluated energy savings for the 2006-2008 and subsequent program cycles. See R.09-01-019 for all Commission decisions regarding incentive payments for the 2006-2008 program cycle and modifications to D.07-09-043.

Energy Division 2009 RRIM White Paper - Energy Division proposal for reworking the Risk Reward Incentive Mechanism established in D.07-09-043.