Document Type

Thesis

Date of Award

1-31-1987

Degree Name

Master of Science in Management - (M.S.)

Department

Organizational and Social Sciences

First Advisor

Daniel S. Walsh

Abstract

Recently, electric utilities have developed and implemented many methods to induce their customers to reduce consumption of electricity. One of the most unique concepts was developed by the General Public Utilities Corporation. Simply, it is the "Pay for Savings" concept which pays energy conservation contractors for actual (measured) energy saved, and not for the retrofit measures used to accomplish the savings. GPU has developed a program, Residential Energy Conservation Action Program, as a vehicle for this concept.

This thesis has attempted to describe the methodology used in implementing RECAP. More importantly, it has analyzed actual results of the program and compared them to other utility programs, behavioral patterns, and a host of other tangible and intangible items.

A number of methods was used in the research. They include modeling of actual results against certain variables, extensive interviews with all involved, customer survey data analysis and modeling, financial analysis of energy conservation contractors, and comparison of actual results with expected results.

The results show that the "Pay for Savings" concept as conveyed through the RECAP Program is a viable and effective means of achieving energy conservation. Certain recommendations are included and are directed toward the improvement of future programs utilizing this concept.

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