14. Revisiting the Adopted Incentive Mechanism

As recommended by most parties, we establish today a schedule for revisiting the specific risk/reward mechanism we adopt today, after we have gained experience with its implementation. Specifically, we direct Energy Division to prepare an evaluation report by February 1, 2011, so that we may consider any recommended modifications to today's adopted risk/reward incentive mechanism in time for the 2012-2014 program cycle. For this purpose, Energy Division may hire evaluation contractors. We authorize Energy Division to use 2009-2011 EM&V funds for this evaluation, and direct Energy Division to solicit stakeholder input in the scoping of the evaluation and in the review of the draft evaluation report(s). Energy Division should also consider today's incentive mechanism in the context of the implementation of greenhouse gas emissions caps and other mechanisms under Assembly Bill 32 and our Procurement Incentive Framework.258

258 See D.06-02-032, mimeo., pp. 34-35.

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