The Effect of Conservation Programmes on Electric Utility Earnings: Results of Two Case Studies

TitleThe Effect of Conservation Programmes on Electric Utility Earnings: Results of Two Case Studies
Publication TypeJournal Article
Year of Publication1987
AuthorsKahn, Edward P., Chris Pignone, Joseph H. Eto, James E. McMahon, and Mark D. Levine
JournalEnergy Policy
VolumeJune
Start Page249
Date Published06/1987
Keywordselectricity markets and policy group, power system planning
Abstract

This paper develops methods to measure the impact of conservation programs on electric utility earnings. The methods are applied to two case studies. Detroit Edison represents case where impacts are unfavorable. This utility has 'excess capacity' which is only made worse by conservation. Pacific Gas and Electric represents a case where conservation helps defer the need for new capacity. Even in this case, programs targeted at summer peak demand are more beneficial than those which save baseload energy. Conditions determining the earnings impact of conservation are complex, involving regulatory factors that are to individual utilities.

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