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DSM bidding - The next generation. [Demand Side Management]

Journal Article · · Electricity Journal; (United States)
;  [1]
  1. Lawrence Berkeley Lab., CA (United States)
With the advent of large-scale utility demand-side management (DSM) programs, there has been increasing controversy regarding the appropriate roles of utilities and energy service companies (ESCOs) in the design and implementation of these programs. Widespread reliance on competitive bidding to acquire nonutility generation has meant that decisions regarding the relative merits of including demand-side resource providers in bidding solicitations for long-term contracts was often the focal point of this debate. A defining feature of DSM bidding programs is that they involve utility customers or ESCOs competing for long-term contracts with utilities - of various ownership types, and located in many areas of the country - which specify amounts of DSM savings to be achieved by the contractor over a defined time period. However, there are significant differences among utilities on key program design and implementation issues. These issues include the method used to determine the appropriate ceiling price, bid evaluation methods, relative weights to assign to price and non-price factors, and specification of reasonable threshold and eligibility requirements. In this article, the authors review current utility experience implementing demand-side bidding programs, describe market response by DSM bidders, and discuss future prospects and possible roles for ESCOs in acquiring DSM resources.
OSTI ID:
7242890
Journal Information:
Electricity Journal; (United States), Journal Name: Electricity Journal; (United States) Vol. 5:4; ISSN ELEJE; ISSN 1040-6190
Country of Publication:
United States
Language:
English

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