Re DSM: Here comes demand-side marketing
- Barrett Consulting Associates, Inc., Colorado Springs, CO (United States)
Demand-side management (DSM) programs where utilities pay large rebates for energy efficient equipment are being declared dead. The popular view of DSM in the past was to encourage conservation of energy with significant rebates, credits and other incentives offered by electric and also natural gas utilities. After years of increase in utility DSM expenditures, the first decline took place last year of about 6% for the electric industry. Although still spending more than $2 billion in 1994, utilities have continued this year to reduce the number of DSM programs. For some utilities there has been a dramatic abandonment of energy efficiency incentive programs. Where programs remain, utilities are placing increased emphasis on the most cost-effective ones which are usually directed toward commercial and industrial facilities. At the same time utilities have been transforming their programs from demand-side management to demand-side marketing. The objectives have shifted to retaining existing customers, developing new accounts, and increasing profitable sales. Incentives are justified in this new cost-driven competitive environment when they result in decreased rates for all customers. Whereas, in the past, DSM program participants were the primary beneficiaries with reduced bills, in the new marketing environment all customers can benefit from reduced bills.
- OSTI ID:
- 231165
- Journal Information:
- Cogeneration and Competitive Power Journal, Journal Name: Cogeneration and Competitive Power Journal Journal Issue: 2 Vol. 11; ISSN CCPJE8; ISSN 1066-8683
- Country of Publication:
- United States
- Language:
- English
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