There are a bunch of different models but they mostly come down to the regulatory agency (IE: the PUC) creating a pot of money for utilities that is paid out wh

There are a bunch of different models but they mostly come down to the regulatory agency (IE: the PUC) creating a pot of money for utilities that is paid out when they reach energy reduction goals. You can learn more by looking into Demand Response programs and Demand Management programs around the country.