What is a “Standard Offer”?
A Standard Offer (S.O.) means the opportunity to save energy in each customer category (for example, residential, small business commercial/industrial, or non-profit institutions like schools, hospitals and government buildings) is offered under the same terms and conditions to all applicants with proper licenses and a clean business record. Selection is first-come, first-served. Payments for energy savings in each customer class are based on “avoided costs” of power plant construction and fuel over a certain period of time (for example, 10 years). Since Energy Efficiency (EE) is far less costly than building and running power plants, EE payments can be approx. 20% of avoided costs for commercial/industrial, 30%-small businesses, 40%-residential and 50%-hard-to-reach.
