Is S.O. effective with Hard-to-Reach and other pockets of untapped savings?
American Synergy and NAESCO express concern about the need to locate and capture “pockets of untapped cost-effective savings” and the need for advisory committees to “prioritize” and “identify [areas] needing innovation”. They would then conduct competitive solicitations to determine which implementers the IOUs believe would offer the best program that might reach these targets. With a Standard Offer program, anyone who identifies a “pocket of untapped cost-effective savings” could immediately design and implement a Standard Offer program that would capture those savings. If they are correct, they will receive the proper incentives. And if there are lesser savings or their efforts are unsuccessful, they will receive incentives in proportion to their success. The RFP process recommended by NAESCO/American Synergy/IOUs would have the ratepayers pay for the “innovative programs” believed to be effective, regardless of their ultimate success. Under the Standard Offer program ratepayers pay
