Transforming the Way We Serve Vulnerable Communities: Performance Incentive Mechanisms and Beyond

The report examines 'equity PIMs' as a regulatory tool to incentivize utilities to improve energy affordability and service for underserved communities. It highlights that while several US states have adopted these mechanisms to target energy efficiency and reduce disconnections, they are most effective when paired with broader systemic reforms, reporting metrics, and direct assistance programs.

• Performance incentive mechanisms (PIMs) are regulatory tools used to align utility incentives with specific outcomes by providing financial rewards or penalties based on performance metrics. Recently, these have been applied to equity and affordability, with at least seven jurisdictions adopting 'equity PIMs' to incentivize increased spending or improved service for underserved communities.
• Equity PIMs primarily target recognition equity (mitigating harms like power outage disparities and energy insecurity) and distributive equity (ensuring a more even delivery of clean energy and energy efficiency benefits). They have not yet been used to address procedural equity (access to decision-making) or restorative equity (reparations for past injustices).

APA

RMI (2024). Transforming the Way We Serve Vulnerable Communities: Performance Incentive Mechanisms and Beyond. https://rmi.org/resources/transforming-the-way-we-serve-vulnerable-communities-performance-incentive-mechanisms-and-beyond/

Chicago

RMI. Transforming the Way We Serve Vulnerable Communities: Performance Incentive Mechanisms and Beyond. 2024. https://rmi.org/resources/transforming-the-way-we-serve-vulnerable-communities-performance-incentive-mechanisms-and-beyond/.

Wikipedia

{{cite report |author=RMI |title=Transforming the Way We Serve Vulnerable Communities: Performance Incentive Mechanisms and Beyond |date=26 April 2024 |url=https://rmi.org/resources/transforming-the-way-we-serve-vulnerable-communities-performance-incentive-mechanisms-and-beyond/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2024transforming, author = {{RMI}}, title = {{Transforming the Way We Serve Vulnerable Communities: Performance Incentive Mechanisms and Beyond}}, institution = {RMI}, year = {2024}, month = apr, url = {https://rmi.org/resources/transforming-the-way-we-serve-vulnerable-communities-performance-incentive-mechanisms-and-beyond/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }