The effects of utility DSM programs on electricity costs and prices

Technical Report · Fri Nov 01 04:00:00 EST 1991

DOI:https://doi.org/10.2172/6077924· OSTI ID:6077924

Hirst, E.

More and more US utilities are running more and larger demand-side management (DSM) programs. Assessing the cost-effectiveness of these programs raises difficult questions for utilities and their regulators. Should these programs aim to minimize the total cost of providing electric-energy services or should they minimize the price of electricity This study offers quantitative estimates on the tradeoffs between total costs and electricity prices. This study uses a dynamic model to assess the effects of energy-efficiency programs on utility revenues, total resource costs, electricity prices, and electricity consumption for the period 1990 to 2010. These DSM programs are assessed under alternative scenarios. In these cases, fossil-fuel prices, load growth, the amount of excess capacity the utility has in 1990, planned retirements of power plants, the financial treatment of DSM programs, and the costs of energy- efficient programs vary. These analyses are conducted for three utilities: a base'' that is typical of US utilities; a surplus'' utility that has excess capacity, few planned retirements, and slow growth in fossil-fuel prices and incomes; and a deficit'' utility that has little excess capacity, many planned retirements, and rapid growth in fossil-fuel prices and incomes. 28 refs.

• Research Organization: Oak Ridge National Lab., TN (United States)
• Sponsoring Organization: DOE; USDOE, Washington, DC (United States)
• DOE Contract Number: AC05-84OR21400
• OSTI ID: 6077924
• Report Number(s): ORNL/CON-340; ON: DE92004595
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320603 -- Energy Conservation
Consumption
& Utilization-- Municipalities & Community Systems-- Public Utilities-- (1980-)
COAL INDUSTRY
COST ESTIMATION
DEMAND
ELECTRIC POWER
ELECTRIC UTILITIES
ENERGY
ENERGY DEMAND
ENERGY MANAGEMENT
ENERGY SOURCES
FLUIDS
FORECASTING
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
HYDROELECTRIC POWER
INDUSTRY
LOAD MANAGEMENT
MANAGEMENT
NATURAL GAS
NUCLEAR ENERGY
PLANNING
POWER
PRICES
PUBLIC UTILITIES
RENEWABLE ENERGY SOURCES