Friday, September 28, 2007

Chicago's Demand Management Scheme

I harp about utility demand management a lot. Take a look at what Chicago is doing in this field. With a properly designed system in Chicago, you might never have to pay more than $0.03/kwh. In Denver, you never can get a rate of less than about $0.08.

Technically, it doesn't save any energy or prevent CO2 generation. It does, however, eliminate the necessity of building of new, larger power plants. Reducing utility capital expenditures should help keep electric costs down.

In fact, it's the first on the list of sustainability priorities that electric utilities must pursue, listed here in order of best cost/benefit:

1. Peak load shaving (with nighttime load valley filling).
2. Conservation.
3. Bringing renewable energy sources on line.

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