DSM and electric utility competitiveness: An Illinois perspective
A predominant theme in the current electric utility industry literature is that competitive forces have emerged and may become more prominent. The wholesale bulk power market is alreadly competitive, as non-utility energy service providers already have had a significant impact on that market; this trend was accelerated by the Energy Policy Act of 1992. Although competition at the retail level is much less pervasive, electric utility customers increasingly have greater choice in selecting energy services. These choices may include, depending on the customer, the ability to self-generate, switch fuels, move to a new location, or rely more heavily on demand-side management as a means of controlling electric energy use. This paper explores the subject of how demand-side management (DSM) programs, which are often developed by a utility to satisfy resource requirements as a part of its least-cost planning process, can affect the utility`s ability to compete in the energy services marketplace. In this context, the term `DSM` is used in this paper to refer to those demand-side services and programs which provide resources to the utility`s system. Depending on one`s perspective, DSM programs (so defined) can be viewed either as an enhancement to the competitive position of a utility by enabling it to provide its customers with a broader menu of energy services, simultaneously satisfying the objectives of the utility as well as those of the customers, or as a detractor to a utility`s ability to compete. In the latter case, the concern is with respect to the potential for adverse rate impacts on customers who are not participants in DSM programs. The paper consists of an identification of the pros and cons of DSM as a competitive strategy, the tradeoff which can occur between the cost impacts and rate impacts of DSM, and an examination of alternative strategies for maximizing the utilization of DSM both as a resource and as a competitive strategy.
- Research Organization:
- Illinois Univ., Chicago, IL (United States). Energy Resources Center
- OSTI ID:
- 426196
- Report Number(s):
- DOE/CH/10623-1; CONF-9411261-; ON: DE96001827; TRN: 96:006562-0008
- Resource Relation:
- Conference: 22. annual Illinois energy conference: energy in the urban environment, Chicago, IL (United States), 16-17 Nov 1994; Other Information: PBD: 1994; Related Information: Is Part Of Energy in the urban environment. Proceedings of the 22. annual Illinois energy conference; PB: 283 p.
- Country of Publication:
- United States
- Language:
- English
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