Duke Energy has been addressing the environment, energy security, and the increasing energy prices by offering a wide variety of incentive programs that enhance energy efficiency. The financial position of a utility is affected as they spend on these programs. One way earnings are affected is through recovery of the program’s direct costs; another is decreased sales, and investor spending on energy efficiency instead of investing in supply-side resources. Program cost recovery, lost margin recovery, and performance incentives are some mechanisms that tackle the impacts on utilities earnings which would result in utilities either investing in efficiency programs, or realizing that the benefits are outweighed.
A direct impact is the program cost
A direct impact is the program cost