May 1995 Issue #11

Collecting DSM Data in a Competitive Environment

As the threat of competition among power providers increases, utilities are becoming less inclined to share information about their DSM programs. Consequently, the job of DSM researchers is becoming more difficult. When a Building Energy Measurement and Performance Analysis researcher recently called a utility representative to ask for DSM data, she was asked why in the world she thought he would want to help any other utility save money or energy. The representative said that his utility had worked long and hard to design and implement a good set of DSM programs and that he had no desire to help his competitors. He appreciated that the researcher was trying to further the general understanding of how to save energy, but thought that her goal was no longer viable in the age of competition. He suggested that she would be wise to start looking for a new job.

Although this utility contact was more forthcoming than others regarding his refusal to provide information, his opinion is not uncommon. Other utilities have asked the researcher what she can provide in return for their DSM program data. And some utilities are choosing not to share DSM information at all. All Wisconsin utilities now file their DSM evaluation reports as confidential, and only state residents have access to them. So far, the Wisconsin utilities have not been challenged by their public utilities commission (PUC). Boston Edison Company (whose parent company is NSTAR) recently petitioned to file its evaluation reports confidentially, but its request was denied by its state PUC.

The increasing refusal of utilities to share DSM program data jeopardizes valuable research activities related to both energy efficiency and the development of successful energy policies. For example, information on DSM programs is an essential component of both regional and national assessments of energy-savings opportunities. Consequently, utilities, PUCs, and the DSM research community are involved in a hot debate regarding utility confidentiality versus national energy research needs.

The above figure compares the total costs of 20 utility-sponsored, commercial lighting DSM programs to the cost of new generation for each utility. The data were obtained from program evaluations performed by the individual utilities and some consulting firms. The figure shows that, across a wide range of situations, each program was saving electricity at a cost of conserved electricity less than the utility's avoided cost at the time the program was planned. Increased confidentiality of utility data will make studies such as this one more difficult in the future.

Fundamental questions have arisen from this debate. For example: In an increasingly competitive environment, is the public interest well served by confidentiality? What kinds of data should utilities be allowed to keep confidential? What kinds of data should be available? And at what price? And even more importantly: Who should get to decide? That is, to whom does the utility data actually belong? If ratepayers fund utility research, shouldn't the ratepayers be able to decide who gets to use the data? These days, these questions and other related issues are being discussed in Building Energy Measurement and Performance Analysis staff meetings and in other forums.

-Leslie Shown

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