Demand side management as a profit center for utilities

Conference · Sun Dec 31 04:00:00 EST 1995

OSTI ID:192223

Gabriel, M A

Demand side management programs and the promotion of energy saving electrotechnologies are viewed as an expense by utilities which not only negatively impacts long term kilowatt hour sales but also forces rates upwards in a market which is seeing a dramatic lowering of avoided costs. This is occuring despite the fact that DSM`s original premise was to minimize rates. Even in the environment of low avoided costs, utilities pursue demand side measures in order to satisfy regulatory promises and political as well as economic pressure by a variety of customers. The cost effectiveness of a DSM program, particularly for residential and small commercial customers, can be seriously impaired as the expenses to both participating and nonparticipating customers rise in relation to the low-avoided costs. As an alternative, DSM producsts and services as well as electrotechnologies can be turned into a profit center for utilities. This paper describes how this can be done and provides a case study.

• OSTI ID: 192223
• Report Number(s): CONF-9501113--
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
MANAGEMENT
MARKETING
POWER DEMAND
PROFITS
VERMONT