Incentives for Consumers to Reduce Power Consumption

In a column entitled "Mother Nature's Dow", NY Times columnist Thomas Friedman describes five initiatives to help shift away from fossil fuels. According to Friedman, "The fourth is decoupling — the program begun in California that turns the utility business on its head. Under decoupling, power utilities make money by helping homeowners save energy rather than by encouraging them to consume it."

By chance, a relevant clipping I had torn from a December, '08, San Francisco Chronicle article emerged from the paper chaos on my desk. It describes how such a program works for the consumer: "PG&E offers rebates if customers can cut the amount of natural gas they use in January and February, compared with the same months a year earlier. For every percent cut in gas usage, customers receive an equal percent credit on their bill. Those who save 10 percent or more get a 20 percent credit."