The Choice Not to Buy: Energy $avings and Policy Alternatives for Demand Response

Deck: 
What California would have saved-in real dollar figures-plus a look at pilot programs from around the country.
Fortnightly Magazine - March 15 2001
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1 Also cited as contributing factors are the lack of long-term contracting, operating problems in the ISO and power exchange (PX) markets, and suggestions that owners of generation took advantage of the supply shortage and the design of California's wholesale power markets to exercise market power to drive prices higher.

2 San Diego Gas and Electric has recently proposed to install hourly meters and offer hourly prices to all commercial and industrial customers greater than 100 kW in size. Former California PUC President Daniel Fessler has recently recommended a demand-side bidding program to pay large users to reduce load in time of supply shortage ("What About California?", Remarks at 14th Annual Utility M&A Symposium, Jan. 29, 2001), one of the options discussed below. See also the comments of Enron Corp. CEO Kenneth Lay to the effect that "[P]rice signals need to be allowed...for people to understand there is a shortage." ("Energy exec: Public needs a costly lesson," , Feb. 4, 2001.)

3 The ISO has developed three new interruptible programs for 2001, one of which will credit customers at pre-set energy prices for reducing load during notified periods, as described below.

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