Speech docs – michigan ap – ndt 2013 r1 neg v louisville vw

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no solvency extension

Filter the aff through the likely utility reaction—they have HUGE informational power and thoroughly control the private choice to use certain energy types—they would SQUASH the plan

Vandenbergh and Rossi, 12 - * Professor of Law, Co-Director, Energy, Environment and Land Use Law Program, and Director, Climate Change Research Network, Vanderbilt University Law School AND ** Professor of Law, Vanderbilt University Law School (Michael and Jim, 65 Vand. L. Rev. 1527, “Good for You, Bad for Us: The Financial Disincentive for Net Demand Reduction” lexis)
The incentives of retail electric distribution utilities are essential because these utilities are critical gatekeepers for household demand reduction programs. This is an important but easily overlooked point. Retail electric distributors, both public and private, interact regularly with consumers, and they control much of the flow of information to and from households and the access to opportunities for demand reduction. They can act aggressively to induce widespread adoption of new practices and more efficient equipment. Or they can conduct widely publicized programs that comply with applicable mandates and generate goodwill without actually generating major reductions in demand. In addition, by controlling access to information and connection with the grid, they can encourage or discourage other firms from selling goods and services that may reduce household demand. n19 All of this can occur with little transparency to regulators and the public.

Despite the gatekeeping role of electric distribution utilities and the importance of reducing household energy demand, distributors in most jurisdictions do not have incentives to ensure that demand reduction strategies succeed on a wide scale. n20 In fact, under the regulatory regimes in most states, utilities would suffer revenue erosion if they induced substantial reductions in demand. Instead, the rate structure in most jurisdictions creates incentives for utilities to promote demand growth. If an essential gatekeeper has financial incentives to increase aggregate demand, it should not be surprising that large-scale demand reduction is not occurring.

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