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This research attempts to investigate the effect of change in system curve on the energy intensity method of measurement and verification of energy savings. With recent push from US government on energy efficiency through EPACT 2007 and upturn in performance contracted energy efficiency project implementations the effective and accurate evaluation of energy savings as compared to the baseline is of paramount importance. The authors have studied different methods of Measurement and Verification (M&V) of energy savings from literature to compare and contrast and clearly bring out merits and de-merits of each. Finally, the role of production level variable plays in establishing the baseline energy usage is discussed. Though modern models proposed in the literature of determining baseline energy usage consider production level, this variable is compounded from two variables viz., time of usage of a system and fraction of total capacity usage.