A system approach to managing demand.
To fulfill the promise of the smart grid, utilities need to give consumers a greater range of options as well as the education to make sustainable, energy-saving decisions. That includes integrating demand management into the utility back-office.
Consensus building is an imperative and educational art form.
With public opposition rising against almost any kind of utility project or investment, collaboration among stakeholders with widely divergent points of view never has been more critical. Three recent utility cases demonstrate how a formal stakeholder collaboration process can build support for otherwise contentious decisions.
Consumers hold the key to technology’s benefits.
The utility industry tends to think about smart-grid development as a technical challenge. However, smart-grid technology will fall short of its promise if utilities don’t obtain buy-in from customers. Successful utilities will actively engage customers at every stage of implementation, customizing their approach to the sensitivities and opportunities in each customer segment.
Understanding the smart energy consumer in a down economy.
Utility customers expect their bills to get larger in the future, and they want utilities to provide tools and options allowing consumers to make their own energy choices. However, consumers might be more receptive to green-energy and dynamic pricing programs when economic conditions—and personal incomes—begin improving substantially.
Realizing the benefits of smart meters.
Information is power, and through smart technologies utility customers will gain access to that information. The challenge faced by utilities is to harness consumer benefits by boosting customer acceptance and participation in programs designed to lower system expenses.
Service quality suffers under PBR framework.
Building upon last month’s installment, more is revealed on how, after 10 years of incentive regulation, reliability has declined in Ontario.
Reliability declines after 10 years of incentive regulation.
After 10 years of incentive regulation, reliability has declined in Ontario. Regulators failed to enforce service-quality standards, and consumers are suffering as a result.
Engaging customers will require more than TOU pricing.
Imagine a setback thermostat programmed at the factory that the consumer couldn’t modify. Who would want this device? You could give the customer a big enough discount to get her to accept the device, but she would be happier and you could save about as much energy if the customer could decide on the temperature and time settings.
Efficiency products will proliferate, for better or worse.
Recently an acquaintance of mine, who shall remain nameless, gave a diamond engagement ring to his girlfriend. She joyfully accepted the ring. But soon her joy turned to disgust when she learned that her lovely “diamond” actually was a cubic zirconium. Last I heard, she’d broken off the engagement and was dating her ex-fiancé’s former boss.
New approaches account for the economic benefits of renewables.
Many green power customers benefit from long-term fixed prices. The most effective programs recognize the value of this price hedge—and fairly exempt customers from fuel cost adders in utility rates.