Targeted efficiency programs: A bridge from DSM to competition
As the electric utility industry moves from an era of regulation towards an era of competition, individual firms must find innovative ways to simultaneously satisfy regulators and shareholders in this new environment. One transition strategy is to develop programs and methods that are compatible with both regulatory and competitive goals. Program targeting is one such strategy. This paper develops an empirical segmentation method which can be used both as a basis for DSM targeting and the marketing of electro-technologies. The information required to selectively target spending on residential efficiency programs can also be used to target likely buyers of electro-technologies and electricity-related products. While deregulation has taken different forms in different states, there seems to be a trend toward increased competition and diversification. Increased competition may come from IPPs inside a utility`s service territory, or from neighboring utilities. Many utilities are likely to react by broadening their focus from selling electricity to selling energy services. This change in focus requires firms to better understand how and why their customers use electricity. The paper proceeds as follows. The next section describes an {open_quotes}Actions-Based Clustering{close_quotes} method which incorporates information about how households actually produce energy services. The third section discusses how the ABC method can be used both to increase the performance of efficiency programs and to promote sales of electrotechnologies. The final section concludes and provides advice for utility planners.
- Research Organization:
- International Association for Energy Economics, Cleveland, OH (United States)
- OSTI ID:
- 416350
- Report Number(s):
- CONF-9507139--
- Country of Publication:
- United States
- Language:
- English
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