A losing proposition for consumers. [demand side management]
A recent suggestion for enhancing America's industrial might calls for collaborations between electric utilities and their industrial customers that focus upon improving energy efficiency. This small-scale industrial policy reasons that: (1) manufacturing firms are extraordinarily wasteful of energy, (2) utilities have both the knowledge and the funding to support a host of useful energy conservation programs, and (3) the result will be a more productive industrial sector in the United States, capable of competing internationally with others who are far more energy efficient. Today, demand-side management (DSM) tools are already in the hands of the states. Further, the Energy Policy Act gives federal support to state utility commissions that act to reduce industrial energy use. These are foundations for more aggressive attacks on industry's alleged mismanagement of energy. Having taken on residential DSM, many commissions and environmental groups seem eager to tackle industry, where big conservation opportunities supposedly lie. They should restrain themselves. The author contends that subsidized conservation will reduce competitiveness and block market development.
- OSTI ID:
- 6478646
- Journal Information:
- Public Utilities Fortnightly; (United States), Journal Name: Public Utilities Fortnightly; (United States) Vol. 131:9; ISSN PUFNAV; ISSN 0033-3808
- Country of Publication:
- United States
- Language:
- English
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