Carmen Best, Chief Policy Officer at Recurve, has spent her career at the intersection of energy policy, data, and system transformation. Her path into the field spans international development, state politics, and regulatory leadership, including nearly a decade at the California Public Utilities Commission. From early work in the U.S. Senate and three years in the Peace Corps in Niger to evaluating energy efficiency programs in Wisconsin and shaping policy in California, Carmen has consistently focused on how policy translates into real-world outcomes.
Today at Recurve, she works to make demand-side resources visible, measurable, and actionable within modern energy systems. Carmen is a leading voice on demand flexibility, measurement-based policy, and the role of data in scaling clean energy solutions. In this conversation, she reflects on lessons from her unconventional career path and explains why making demand-side performance visible is key to delivering economic, climate, and reliability benefits for the grid and the people who rely on it.
It was a pleasure to sit down and learn more about Carmen for this latest issue of Building Baselines.
Demand flexibility delivers economic, climate, and reliability benefits when it is visible, measurable, and treated as real infrastructure.
The first step is explicitly recognizing demand-side resources in Integrated Resource Planning. Many states already do this. Michigan, for example, requires utilities to explain how demand-side resources will be managed alongside supply-side investments, rather than treating them as an afterthought, and they just extended this principle to virtual power plans (VPPs) with a threat of disallowing capital investments if they don’t account for them as a capacity alternative.
California requires analysis to estimate the size of demand-side resources. Under the state’s “first in the loading order” framework, utilities must capture all cost-effective demand-side resources before procuring new supply-side assets, and resource plans must be carbon optimized so the carbon value of those resources is reflected in IRP modeling.
But inclusion alone is not enough. Demand-side resources need real priority, supported by measurement frameworks that estimate expected performance and track what actually shows up. Without that feedback loop, demand-side resources remain theoretical and planning assumptions stagnate.
When treated as core infrastructure, demand-side resources make IRPs more adaptive and performance-driven. Forecasts improve, investment decisions become more balanced, and planners gain confidence that these resources will deliver when and where they are needed.
Has there been evidence in Michigan and California that the additional planning steps and frameworks they’ve adopted have led to stronger outcomes for demand-side programs and resources across utilities?
The answer is mixed. In some ways these frameworks have made a difference, but there are still clear limitations.
On the positive side, states like Michigan and California are less dependent on rigid, percentage-based Energy Efficiency Resource Standards set by legislatures. Instead, utilities must explain in their IRPs how demand-side resources fit into the broader resource mix and what budgets are needed to deliver them. That approach provides more stability and aligns investments more closely with system needs, similar to how distributed resources compete in capacity markets based on their ability to deliver value.
Where the impact has been more limited is in program design and delivery. Planning exercises often establish reasonable budgets, but they do not always align with true technical or economic potential. There is also a disconnect between what is assumed in planning and what shows up in the field, partly because incentives remain focused on deploying technologies rather than delivering measurable performance.
Demand-side resources should be held to the same standard as supply-side investments. If they are counted in the plan, they need to deliver real megawatts. That requires tracking actual savings and load reductions and adjusting plans accordingly.
Potential studies could also improve. Many still rely on customer adoption or “widget-based” pricing models that estimate how many devices might be installed. While useful, these approaches can artificially constrain goals. Greater use of advanced metering data and granular analytics could provide a clearer picture of what demand-side resources can deliver and help close the gap between planning assumptions and real-world outcomes.
Virtual Power Plants are getting a lot of attention, but many remain stuck in pilot mode. In your opinion, from a policy and regulatory perspective, what is missing today? Particularly when it comes to measurement and verification, and trust, what do you believe is preventing VPPs and other demand-side resources from becoming scalable, dependable grid assets?
Virtual Power Plants have gained real momentum in recent years, in part because strong industry leadership helped normalize them as legitimate grid resources during high-profile reliability events. That visibility has mattered. One consequence, however, is that longer-term demand-side resources, such as energy efficiency, have often been left out of the VPP narrative. As VPPs have come to be defined primarily as fast, dispatchable resources, a large category of firm load modification delivered through demand-side investments has been overlooked.
Measurement is a key reason for this gap. Batteries and other dispatchable assets are easier to value because their output can be directly measured. Many demand-side resources rely on counterfactual analysis, which introduces more complexity and uncertainty. That has always been true for energy efficiency and behavioral demand response, but it does not mean those resources cannot or should not be fully incorporated into VPP frameworks.
In some regions, VPPs have already scaled significantly. Arizona is a good example, where utility-led VPPs have become flagship initiatives even as traditional efficiency programs have been reduced. One reason is that VPPs are highly visible. Regulators and utilities can observe them operating in near real time, which builds confidence and support.
As VPPs mature, the next challenge is accountability. Stakeholders increasingly want to understand their incremental impact on the grid. Many VPPs rely on device-level telemetry and DERMS platforms – which do provide critical visibility and we can also have more holistic assessments to build even more confidence with resource planners.
A complete measurement framework, one that combines device telemetry with utility meter data, would address this challenge. Seeing performance from both perspectives makes results more credible and allows VPPs to function as dependable, mainstream grid assets. This requirement is not unique to VPPs; it reflects the same standard demand-side management programs have always needed to meet to demonstrate value.
VPPs have also been effective at communicating their impact. Demonstration projects have clearly shown how these programs reduce costs, engage customers, and deliver tangible benefits. Historically, the demand side has struggled to tell that story. Visibility, accountability, and narrative are closely linked, and VPPs benefit from being associated with visible, physical assets like batteries and solar panels.
Those same principles should apply to energy efficiency and other demand-side resources. When they are measurable, transparent, and accountable, they can be treated as real infrastructure and funded accordingly.
It is also important to recognize the distinct role VPPs play relative to Integrated Resource Planning. IRPs focus on long-term system needs, while VPPs are particularly well suited to addressing short-term reliability and resource adequacy challenges. In markets like Texas, which do not rely on IRPs, VPPs can respond quickly to immediate system conditions and market signals. That flexibility is a major part of their value and a key reason they are likely to continue scaling as measurement and trust frameworks mature.
If that level of data access were available, the most exciting thing is that it would finally answer the question, “Is it real?” Data is the currency that makes demand-side resources credible. When performance data is clear and trusted, it lifts the veil on what kind of value these resources are delivering, and that changes everything.
Once that barrier is removed, it unlocks a new wave of innovation. We have seen enormous creativity in the energy industry over the past decade, but one of the most persistent constraints has been data access. Who gets access to what data, and when, creates friction at every stage. Removing that friction lowers the barrier to entry for new solutions and allows ideas to move faster from concept to scale.
It also enables solutions that are much better aligned with customer needs. Instead of forcing customers to fit into rigid, pre-defined program designs, customers and building owners could ask for what they want. Programs could respond to real demand rather than relying on assumptions about behavior or preferences.
The same shift applies to contractors and aggregators. In performance-based, technology-agnostic programs, they are paid for delivering outcomes, not for installing specific equipment or navigating complex rebate rules. That frees them to innovate and focus on results instead of paperwork and compliance.
Ultimately, widespread access to trusted building and demand-side data would move the system away from guesswork and toward outcomes. It would make demand-side resources real, scalable, and responsive in a way that simply is not possible today. To be clear, maintaining privacy is not something to throw out the window and we have found that providing secure role-based access with controls bounded by existing policies, also have tremendous value in reducing friction by delivering actionable intelligence.
Data is the currency that makes demand-side resources credible.
My advice is to build real technical depth alongside your policy interests. Early in my career, I focused on science and math in structured environments like graduate school. That foundation gave me both discipline and confidence, and it has served me throughout my work in energy policy.
All of my degrees are in the sciences, and I learned policy as a complementary skill rather than the other way around. Even though my career has been entirely in the policy space, having a strong technical background allowed me to engage more effectively and make better decisions. In energy, policies ultimately have to align with physical reality. The politics may change, but the physics does not.
That does not mean everyone needs to become a physicist. In my case, it was geology. Others come from engineering, economics, or law. There are many paths into the field. What matters is bringing something substantive to the table beyond policy process alone.
I also encourage early-career professionals to be open to creating their own path. When I was in school, formal environmental policy programs were rare, so many of us built our careers by combining disciplines. Today there are more dedicated policy programs, which is a great thing, but I still believe the strongest practitioners are those who pair policy expertise with a deep understanding of how some existing system works and how energy connects to it.
Energy policy needs people who can translate between technical reality and regulatory decisions. Developing that ability early will open more doors and make your work more impactful.
Speed Round
Coming into this space in the 90’s means Al Gore would absolutely be on the guest list. I’d also invite Arnold Schwarzenegger and former Secretary of Energy Jennifer Granholm. I was at the California Public Utilities Commission during Schwarzenegger’s administration, when policies like the “first in the loading order” for energy efficiency were adopted. He also supported the California Solar Initiative and cap-and-trade, advancing a set of creative and forward-looking ideas that had a lasting impact. Secretary Granholm shares that same spirit of bold, pragmatic leadership, for a clean energy economy which is why she’d round out the table.
One book that’s influenced how I think about energy systems is Edison to Enron, especially the early chapters on Samuel Insull. He played a central role in building electric infrastructure in Chicago and helped shape the regulatory model we still use today, recognizing that utility investment could drive both urban and rural economic development.
What stands out is how intentional he was about load management long before we used that term. He focused on building infrastructure, increasing adoption of electric technologies, and improving system utilization. That mindset still feels highly relevant.
The Enron portion is also interesting as a reminder of how disruptive new business models can reshape markets. But what resonates most with me is the Industrial Revolution context. It highlights that many of today’s challenges around regulation, load, and system design have deep historical roots.
I would have joined the U.S. Foreign Service. That was my original plan when I joined the Peace Corps. I’ve always been drawn to diplomacy and to solving complex problems collaboratively across cultures and systems.
Life took me in a different direction when I returned to the U.S., and energy became my focus, but that interest in diplomacy never really went away. At its core, diplomacy is about navigating uncertainty, managing relationships, and finding shared solutions, and that mindset still resonates with me.
In some ways, I feel like I still get to be a diplomat through my work in energy. Each state’s energy system functions almost like its own country, with distinct rules, cultures, and priorities. Having worked in California during an era of early clean energy experimentation and now engaging with markets like Texas, the experience often feels like a form of cultural exchange. There are real differences in how systems are designed and how decisions get made but also shared challenges.
Energy and climate are fundamentally global issues, even though the solutions have to be local. Access to fossil and renewable resources are shaped by geography and natural conditions; the built environment is the culmination of history, planning and available materials. What works in one place may not work in another. That need to balance global goals with localized solutions is one of the reasons I find this work so compelling. In the end, whether through diplomacy or energy policy, the work is about managing complex systems and helping them function better for people to thrive.
Thank you, Carmen, for sharing your time and insights. Your perspective on data, demand-side resources, and the future of energy systems brings clarity to some of the industry’s most complex challenges, and we’re grateful to include your voice in Building Baselines.