Performance Incentive Mechanisms (PIMs) are being considered to nudge utilities' behaviors and have been successful in states like New York and Rhode Island. Hawaii implemented shared savings mechanisms which include solar development and storage. Effective PIMs do require a move away from 'business as usual' models. States' recommendations have focused on short-term savings first rather and long-term approaches. PUCs have to make sure public interest is served but it cannot be done a rate-case. More recently, environmental justice groups and local governments may have not been included in PIM discussions, now they are and it is a progress.
Critical Commentary
Performance Incentive Mechanisms (PIMs) are being considered to nudge utilities' behaviors and have been successful in states like New York and Rhode Island. Hawaii implemented shared savings mechanisms which include solar development and storage. Effective PIMs do require a move away from 'business as usual' models. States' recommendations have focused on short-term savings first rather and long-term approaches. PUCs have to make sure public interest is served but it cannot be done a rate-case. More recently, environmental justice groups and local governments may have not been included in PIM discussions, now they are and it is a progress.