The "Standard Offer" system for energy efficiency

Women's Energy Matters has worked with the finest energy-efficiency experts in the U.S. to design an energy-efficiency system well-suited for Community Choice Aggregators: the California Standard Offer System for Energy Efficiency. A similar system in other states has low administrative costs, no need for micromanaging, and flexibly responds to local needs. It saves 40% more energy per dollar than California now does, and even has a money-back guarantee!

This is because contractors are paid only for the energy they save; if they don't save the energy, the money is there for another effort. If they fall too far below their targets or move too slowly, they lose their contracts. The system is backed up with a more reliable measurement system than California's current utility-run one.

The meaning of a "standard offer" is that the money for saving energy is offered to everyone under the same terms and conditions, in a completely fair and transparent process. The contracts are relatively small - $5,000 to a few million dollars - and anyone with a clean business record may apply, first-come, first-served.

The system encourages innovative, comprehensive programs and creates a vibrant local energy-efficiency infrastructure, as local non-profits and businesses demonstrate effective ways of saving energy that haven't been part of the utilities' limited menu. Sierra Club California and the California Coalition for Energy Efficiency have endorsed the plan and are promoting its adoption by Community Choice cities.

Barbara George