Real-time pricing has been hindered by the misperception that a shift to RTP will create new types of risks, without creating benefits for utilities or customers.
Ahmad Faruqui and Melanie Mauldin
Kerry Diehl, and Rich Gillman
Loyalty may depend more on age group than anything else.
Utilities may want to start asking their customers some personal questions.
Such as: "How old are you?"
Why? Because customer behavior may have more to do with age and other demographics than anything. For instance, younger customers compose the highest-switching segment. However, older customers tend to have more loyalty. But so too, these loyal customers are the hardest to woo from another supplier.
Phil Hanser, Jose Wharton, and Peter Fox-Penner
The electric industry hasn't seen so much upheaval since Thomas Edison threw the switch at the Pearl Street Station. Full retail access to competitive markets in generation and supply will challenge traditional ways of doing business. But no change will prove more dramatic for electric utilities than setting a competitive price (em that most fundamental of business decisions.
In anticipation of competition, utilities have been experimenting to discern what forms of the "product" (em electric power (em customers might want, and at what prices. One such experiment is real-time pricing.
Sears, Roebuck and Co. selected Enova Energy as a partner in a "regional energy alliance." Enova Energy, an Enova Corp. subsidiary, will design and install a technical learning center at Sears' Tucson, AZ department store. The company also will provide energy services at other Sears stores in several western states. The learning center will be one of a nationwide system of energy-efficient stores used as models and for the testing and training of facility operations equipment. All of the store's services will be aimed at improving energy efficiency and reducing costs.
Southern Communications Services, Inc., which recently entered the wireless communications market, has begun to market products and services under the name of its parent, Southern Company. Southern also is parent to Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Savannah Electric.
Gulf Power, meanwhile, signed a contract with Scientific-Atlanta, Inc. for two-way energy management applications. Some 40,000 homes will be fitted with the interactive systems over eight years.
Mark E. Krebs
How the electric industry uses DSM and IRP to build load, ignoring basic truths found in fuel-cycle analysis.It was during the early 19th century that General von Clausewitz announced his nine principles of warfare.
William A. Fox was named president of The Peoples Natural Gas Co. and Hope Gas, Inc. (em both subsidiaries of Consolidated Natural Gas Co. Fox comes from Virginia Natural Gas, another subsidiary. Succeeding him is Jerry L. Causey, VNG's operations v.p. Francis J. Corbett, formerly g.m. of VNG's northern division office, steps into Causey's post. Jose M. Simon was made controller at the corporate office. Joseph R.
George T. Preston, and Daniel M. Rastler
Will new technologies undermine the customer base?
Or can utilities use them offensively?The electric power industry stands poised to move to a fully competitive market. Business realities already imply a broadening of customer choice.
Marc W. Chupka, former special assistant to Energy Secretary Hazel R. O'Leary, has been promoted to acting assistant secretary for policy. He replaces Dan Reicher, now O'Leary's chief of staff. Melanie A. Kenderline was appointed deputy assistant secretary for House liaison in the office of congressional, public, and intergovernmental affairs.
MidCon Corp.'s president and CEO, John F. Riordan, was elected chair of the Gas Research Institute, succeeding Thomas L. Fisher of Northern Illinois Gas Co.