Using market transformation to achieve energy efficiency: The next steps
As state regulation shifts from centralized planning to market-driven strategies, making energy-efficient choices more attractive in the marketplace should be emphasized. Because competition in the electric industry is coming on fast, electric utilities and their regulators are taking a fresh look at demand-side management programs. These programs, designed to produce energy savings and reduce the need for future capacity, are now generally being cut back, along with other expenses, as companies pare down and prepare for wider competition. Electric companies and their state regulators are de-emphasizing demand-side management (DSM) programs, as companies streamline in preparation for the competitive era. Indeed, the states and regions would not need to design, implement and fund any additional DSM programs, if only congress would adopt: (1) stronger clean air standards, including carbon, nitrogen oxide and sulfur dioxide; (2) much stronger lighting and appliance efficiency standards; (3) stronger industrial motor efficiency standards; and (4) stronger code standards for residential, industrial and commercial buildings. But Congress is focused today on using market forces to win its objectives and is not likely to support central planning approaches. Meanwhile, states have a long history of working to improve the environment and are not likely to abandon these efforts. An impass? Not at all. Today states are forming regional entities to develop market-driven strategies to achieve efficiency goals. These strategies are designed to win the approval of environmentalists as well as market-focused leaders in Congress.
- OSTI ID:
- 518449
- Journal Information:
- Electricity Journal, Vol. 10, Issue 4; Other Information: PBD: May 1997
- Country of Publication:
- United States
- Language:
- English
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