Demand-side management in public power - the quiet revolution

Public power utilities have been leading utility efforts in demand-side management (DSM) for over 20 years, are aggressively pursing DSM today, and plan to nearly double expenditures in energy efficiency within the next three years. These DSM activities were initiated without rate-of-return incentives nor regulatory mandate. Furthermore, public power utilities have implemented these programs with minimum fanfare and self promotion. The American Public Power Association surveyed the nation's more than 2,000 public power utilities in the summer of 1991. The 851 responding utilities included municipal electric systems, state-end county-owned systems, and public utility districts. Compared by number of customers served, this response group is a representative sample of all public power utilities. The objective of this survey was to compile the information necessary to characterize accurately the DSM activities of public power utilities. Results show that: 48% of the responding utilities operate DSM programs. These utilities represent 57% of total retail electricity sales in public power. DSM expenditures of survey respondents totalled $176 million in 1991, and $253 million extrapolated to all public power utilities. By this measure, publicly owned utilities represent 17% of electric utility industry expenditures on DSM but only 13% of total electric utility industry revenues.