DEMAND-SIDE MANAGEMENT - REFLECTIONS OF AN IRREVERENT REGULATOR

This paper describes methods of introducing energy conservation as an alternative to additional generation. Such strategies should be followed if conservation costs less than generation. However, many existing utility conservation programs have not succeeded because they have increased utility costs while reducing utility sales thus resulting in reduced utility profits. Such programs have also provided inequities for consumers. The paper compares a traditional conservation program with an innovative program where utilities are able to charge consumers for energy saved as a result of utility conservation investment. This innovative program eliminates many of the problems associated with the traditional programs.