Energy-saving moves may pay off for utilities
Southern California Edison and other California utilities will be eligible for as much as a combined $450 million in incentives for meeting energy efficiency targets for the three years ending in 2008.
The incentives were approved Thursday at a meeting of the California Public Utilities Commission.
The rewards will start to accrue when 85% of efficiency targets are met.
The utilities may be subject to an equivalent amount of financial penalties that will begin when energy savings fall below 65% of targets.
California is encouraging energy saving to reduce the need for new power plants and curb pollution from existing ones.
The incentives will come through higher rates the utilities will be able to charge customers for power and gas.