Volatile Energy Costs and the Floundering Deregulation of Electricity: A Fresh Look at Integrating Supply-Side and Demand-Side Resources

January 19, 2001 - 12:00pm
Seminar Host/Point of Contact: 

The restructuring of the California electricity industry has not proceeded as intended. A generation capacity shortage, combined with spiraling natural gas costs and a flawed electricity market structure, have led to unprecedented wholesale electricity prices, power outages, and a political and financial crisis for the State. This crisis will not be solved through increasing electricity supply alone. Energy industry observers agree that 1.) energy efficiency, 2.) distributed on-site generation, and 3.) price responsive building energy management strategies, will all play critical roles in the state’s energy solution. For energy consumers, the challenge is one of decision-making under conditions of great uncertainty. With highly volatile natural gas prices and future retail electricity prices utterly unpredictable but likely to rise, it is incumbent on energy users to protect themselves against future unknown energy costs. Risk management will therefore underlie consumers’ energy decisions in the coming years. This presentation examines how an integrated strategy of end-use efficiency, demand flexibility, and on-site generation will form the basis of consumers’ energy risk management. For more information about this seminar, please contact: Julie Osborn(510) 495-2420

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