Innovative and Progressive Electric Utility Demand-Side Management Strategies

Conservation of electric energy has been a concern of energy users in the residential, commercial and industrial sectors for several decades, and has increased in significance since the 1973 energy shortages. During this time, it has also become increasing difficult for electric utilities to install new generating capacity due to public concerns about nuclear energy and environmental issues. In many areas of the country, utilities now find themselves capacity short during their peak periods, and have concerns about providing a reliable supply of electricity. These utilities have initiated programs which encourage their customers to conserve electric energy, and shift or lower use during the utility's peak periods. In other areas of the country there are utilities which have more than adequate electric supplies. These utilities have developed programs which ensure that costs of electricity are such that existing customers are maintained. Programs which address demand issues of an energy utility are referred to as Demand-Side Management (DSM) and are extremely rigorous in scope. Electric utilities have pursued many different DSM policies and strategies during the past decade. These programs have addressed various technologies and have included rebates for efficient lighting, electric motors and packaged air conditioning systems. More recently, however, many utilities have implemented very innovative programs, which indicates an increased commitment towards demand planning, and requires a substantial financial investment in new equipment and engineering services. Some programs have addressed such areas as thermal storage and industrial processes, and others have included comprehensive facility energy studies where greater than fifty percent of the cost of energy retrofits may be covered by the utility. Progressive pricing strategies have included real-time pricing and aggressive curtailable rates for commercial and industrial buildings. Further, new standards are being established by electric utilities which promote energy efficient new construct ion. All of these programs can have considerable impacts on both the customer's and utility's energy use patterns and load shapes. This paper will discuss a number of more significant and innovative DSM programs, and will explain the potential load and energy impacts