How are the interests of successor customers taken into account when a utility invests in energy efficiency upgrades at a site?
The utility only invests in upgrades that are cost effective, and the threshold for cost effectiveness includes a significant net savings requirement. That means the fixed charge for cost recovery will be less than the estimated savings on an annual basis. The fixed charge does not increase when rates increase, creating additional value for the upgrades. As a result, a successor customer will receive the benefits of an improved building and receive a lower bill than would otherwise be due for the energy services at that site.