Abstract
The author cites reports of the cost shock that customers face to pay for electricity generation and transmission systems reliability and capacity problems. She then reveals the equally serious backlog of investment needed to pay for aged and unreliable customer production and distribution systems and the associated investment uncertainty. She explains how customers and suppliers have opposing business goals and how by integrating investments in energy supply systems on both sides of the utility meter, savings in energy supply system efficiencies become an investment opportunity for both suppliers and customers. With proper application of web-based information technology, financial benefits can be realized and risk mitigated.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsNotes
- 1.
Electricity restructuring is a phrase used to describe a situation where State public policy makers require investor owned utilities (IOU) which own electric power plants to sell them to other business entities which compete to sell wholesale electricity. The intent is for States to increase competitive pricing of electricity and reduce regulations that set rates. At one time, restructuring was called deregulation. However, while the supply was deregulated, the price was not. Numerous state and federal policies and actions (or inactions), especially in California, resulted in large cost increases in retail rates especially by electric producers gaming (manipulating) the electric grid and operating their plants in ways to artificially increase the retail price. The CA experience was a result of regulatory failure not true deregulation. The U.S. now has a mixture of regulated and restructured electric generation. Pennsylvania is cited as the best case where electric restructuring has reduced costs. Electric Power Industry Restructuring Fact Sheet www.eia.doe.gov/cneaf/ electricity/page/fact_sheets/restructuring.html
- 2.
The Electric Power Research Institute or EPRI is a non-profit organization which drives longrange research and development planning for the electric industry. EPRI's members represent more than 90% of the electricity generated in the United States. International participation in its programs includes 40 countries.
References
Anderson, R. R., & Sullivan, J. B. (1995, August). Manual on financing energy efficiency projects. World Energy Efficiency Association (WEEA).
APPA (2008). http://www.appa.org.
Bernstein, W. J. (2004). The birth of plenty: how the prosperity of the modern world was created. New York: McGraw-Hill.
Casten, T. R. (1998). Turning off the heat: why America must double energy efficiency to save money and reduce global warming. New York: Prometheus Books.
Covey, S. R. W. (1989). The seven habits of highly effective people. New York: Free Press.
Deutsch, C. (2006, October 21). Sunny side up. New York Times.
Electric Power Research Institute (EPRI) (2007). Power to reduce CO2 emissions — the full portfolio. http://www.epri.com.
Electric Power Research Institute for the Board of Directors (2003). Electricity sector framework for the future, summary report. Palo Alto, CA: EPRI.
Energy Information Administration (2007). 2007 Annual Energy Outlook (AEO 2007) Base Case.
EPA (2008). Combined heat and power partnership. http://www.epa.gov/chp/.
Financial Times (August 18, 2003). 1 & 3.
Financing Authority for Resource Efficiency of California (“FARECal”). California municipal utilities association. http://www.cmua.org/farecal.htm.
Friedman, T. (2005). The world is flat: a brief history of the twenty-first century. Farrar: Straus and Giroux.
Hansen, S. J., & Weisman, J. C. (1998). Performance contracting: expanding horizons. Lilburn: The Fairmont Press.
Harvey, F. (2008, June 19). Energy from industry could halve gas imports. The Financial Times. International District Energy Association (2007a). 2007 Energy Bill Signed into Law. IDEA. http://www.districtenergy.org
International District Energy Association (2007b). News Release. International district energy association. http://www.districtenergy.org
Johnson Controls (2008, March). New research reveals increased interest in energy efficiency, but limited action. www.johnsoncontrols.com
Kushler, M., York, D., Witte, P. (2006). Aligning utility interests with energy efficiency objectives: A review of recent efforts at decoupling and performance initiatitves. American Council for an Energy-Efficient Economy.
Laitner, J. A., & Ehrhardt-Martinez, K. (2008, February). Information and communication echnologies: the power of productivity. http://aceee.org/pubs/e081.htm: American Council for an Energy-Efficient Economy.
Lovins, A., & Others (2002). Small is profitable — the hidden economic benefits of making electrical resources the right size. Rocky Mountain Institute.
Microsoft Corporation (Developed by Bloomsbury Publishing Plc) (2009). Encarta world english dictionary [North American Edition]. http://uk.encarta.msn.com/dictionary_1861815156/real_time.html
NAESCO (2008). NAESCO's Federal — 2nd Quarter 2008 Policy Priorities. http://www.naesco.org/policy/federa/2008-02.htm
National Rural Utilities Cooperative Finance Corporation (2007). http://www.nrucfc.org
NEP Initiative — Expert Report (2003/2004). National Energy Policy (NEP) initiative. http://www.nepinitiative.org/expertreport.html.
Project Finance. Wikipedia (2008). http://en.wikipedia.org/wiki/Project_Finance.
Roberts, D. (2007, August 12). Interview with Thomas Casten. Gristmill. http://gristmill.grist.org/story/2007/8/12/105752/270
Singer, T. (2007). Comments of the NAESCO in Response to the DRAFT REQUEST FOR PROPOSALS (drfp) NUMBER DE-RP36-06GO96031 (Draft). www.naesco.org/policy/testi-mony/2007-0-26.htm
Solmes, L. (2008). Integrated energy systems: reliability and lowest btu cost. In B. Capehart (Eds.), Encyclopedia of energy engineering and technology. Boca Raton: Taylor & Francis.
Tech Target: Search CIO-Midmarket (2007–2009). Real Time. http://searchcio-midmarket.techtar-get.com/sDefinition/0,,sid183_gci214344,00.html
Tech Target: Search Domino (1999–2009). Real Time. http://searchdomino.techtarget.com/sDefinition/0,,sid4_gci934876,00.html
Tech Target: Search Unified Communications (2008–2009). Real time application. http://searchu-nifiedcommunications.techtarget.com/sDefinition/0,,sid186_gci1309755,00.html
The World Bank — ESMAP Report (2006, May). Financing energy efficiency: lessons from recent experience with a focus on Brazil, China and India. New York.
Trisko, E. M. (2006, January). America Needs New Power Plants!
Trotti, J. (2008, May/June). Institutional thinking: back-to-back we face the past. Distributed Energy, 8.
U.S. Department of Energy (1978, November). The national energy act. en.wikipedia.org/wiki/National_Energy_Act
U.S. Department of Energy (2007, June). The potential benefits of distributed generation and rate-related issues that may impeded its expansion. http://www.oe.energy.gov/epa_sec1817.htm
U.S. Department of Energy: Energy Efficiency and Renewable Energy. Building technologies program: Building energy software tools directory. http://apps1.eere.energy.gov/buildings/tools_directory. http://www.oe.energy.gov/epa_sec1817.htm
U.S. Department of Energy: Office of Electricity Delivery and Energy Reliability. Smartgrid. www.oe/energy.gov/smartgrid.htm.
University of New Mexico (1995). Capital Projects and Facilities Department
USCHPA — United States Clean Heat & Power Association. (2007). http://www.uschpa.org/i4a/pages/index.cfm?pageid=1.
Vaitheeswaran, V. V. (2003). Power to the people. New York: Farrar, Straus and Giroux.
What Is the USCHPA? (2001). International district energy association. http://www.districten-ergy.org.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2009 Springer Science+Business Media B.V
About this chapter
Cite this chapter
Solmes, L.A. (2009). The Opportunity. In: Solmes, L.A. (eds) Energy Efficiency. Springer, Dordrecht. https://doi.org/10.1007/978-90-481-3321-5_3
Download citation
DOI: https://doi.org/10.1007/978-90-481-3321-5_3
Publisher Name: Springer, Dordrecht
Print ISBN: 978-90-481-3320-8
Online ISBN: 978-90-481-3321-5
eBook Packages: Business and EconomicsBusiness and Management (R0)