Utility LED light bulb rate-base subsidy

Economic logic of utilities subsidizing efficient bulbs — $2000/kW installed cost of new plants justifies any kWh savings cheaper than that. Massachusetts DPU example.

That's still true in the utilities business — the electrical utilities, the water utilities. They have commissions usually run by the state — in Massachusetts it's the Department of Public Utilities — and they basically set the profitability of these companies. They look at them critically and they'll say, we'll let you make five percent so that people who invest in your stocks can put them through pension funds, you make enough money to retire, and whatever you can afford to spend you can spend. Anyone gone to the store and bought some LED light bulbs that were discounted because the local utility was paying seven dollars for that light bulb? Why do they do that?

Student: [answer about energy savings]

That's part of it, but it's really an economic reason.