Who should administer energy-efficiency programs?

We observe that no single administrative structure for energy-efficiency programs has yet emerged in the US that is clearly superior to all of the other alternatives. We conclude that this is not likely to happen soon for three reasons. First, policy environments differ significantly among the states. Second, the structure and regulation of the electric utility industry differs among the regions of the US. Third, market transformation and resource acquisition, two program strategies that were once seen as alternatives, are increasingly coming to be seen as complements. Energy-efficiency programs going forward are likely to include elements of both strategies. But, the administrative arrangements that are best suited to support market transformation may be different from the arrangements that are best for resource acquisition.