Carbon-Based Incentives: Aligning Utility Incentives with the Decarbonization Impacts of Efficiency and Electrification Measures
Ashley Muspratt1, Patrick Collins2, and Bill Bullock3 1Center for EcoTechnology, 2Shrewsbury Electric and Cable Operations, 3Massachusetts Municipal Wholesale Electric Company
Electric utilities are key player in the decarbonization of our economy. They procure energy and determine the extent to which it is renewable, and they influence customer consumption through their marketing and incentive programs. Incentive programs from utilities can help raise awareness of and send market signals to customers about strategic electrification measures such as heat pumps, induction stoves, and electric yard equipment. Moreover, incentive programs from utilities can make these measures more affordable for customers.
With support from the American Public Power Association’s (APPA) Demonstration of Energy & Efficiency Developments (DEED) Program, the Center for EcoTechnology (CET) and the Massachusetts Municipal Wholesale Electric Company (MMWEC) built a model to aid MMWEC’s public utility members with setting energy efficiency and electrification incentives at levels that are fully aligned with the Commonwealth’s decarbonization objectives. The model uses carbon as the metric for deriving incentive levels and for comparing carbon benefits from a range of measure types, including efficiency, electrification, renewable energy, demand response, and storage. In addition to the carbon analysis, the model also calculates economic impacts of installed measures for the customer and utility. By adopting this approach to setting incentives, utilities will help climate-conscious (and wallet-conscious) customers prioritize measures and will optimize their programs for decarbonization, readying our building stock and vehicles for a fossil-fuel-free future.
Ashley Muspratt, President, joined CET in 2018. In her previous role as Director of Innovation, Ashley spearheaded novel building decarbonization services, wasted food solutions, and financing opportunities for customers and partners. She has broad experience with the organization’s nation-leading wasted food programming, building sector decarbonization, and deconstruction. Ashley assumed the role of president in 2022, and as CET’s leader is deeply engaged in strategic planning, implementing diversity, equity, and inclusion initiatives, and expanding the breadth and efficacy of programs through operations, communications, and fundraising. Ashley has a long track-record as a leader and innovator. Prior to joining CET, she founded and lead a waste-to-energy startup in sub-Saharan Africa, which converted human fecal sludge into industrial fuel. The company’s investors included the Gates Foundation, USAID, and the French Development Agency and was widely recognized for reinventing the economics of urban sanitation in low-income countries. Ashley has an MS in Environmental Engineering and PhD in Energy and Resources from the University of California, Berkeley.