A survey of rate case methods for sales forecasting.
By Ahmad Faruqui and Eric Shultz, The Brattle Group
Demand side management has a growing effect on energy sales. Utilities are applying five methods to account for DSM in sales forecasts. A Brattle Group survey reveals those methods and their characteristics.
Byline:
Ahmad Faruqui and Eric Shultz
It’s tempting to attribute the recent slowdown in electricity demand growth entirely to the Great Recession, but consumption growth rates have been declining for at least 50 years. The new normal rate of demand growth likely will be about half of its historic value, with demand rising by less than 1 percent per year. This market plateau calls for a new utility strategy.
Author Bio:
Ahmad Faruqui is a principal at The Brattle Group, and Eric Shultz is a research analyst. This article was revised from Faruqui’s presentation at the Goldman Sachs Power & Utility Conference on Aug. 14, 2012. The authors acknowledge research assistance by Jennifer Palmer.
Five forces are putting the squeeze on electricity consumption.
Byline:
David Hoppock and Sarah Adair
Ongoing litigation over EPA rules raises compliance risks and costs. North Carolina utilities, however, benefited from the state’s forward thinking.
Author Bio:
David Hoppock (david.hoppock@duke.edu) is a research analyst and Sarah Adair (sarah.adair@duke.edu) is an associate in research at Duke University’s Nicholas Institute for Environmental Policy Solutions in Durham, N.C.
Retrofitting early protected North Carolina ratepayers.
Changes in regulatory requirements, market structures, and operational technologies have introduced complexities that traditional ratemaking approaches can’t address. Poorly designed rates lead to cross-subsidies, inequitable outcomes, and perverse incentives. An objective-based approach can better communicate costs to customers in a way that better serves operations and policy goals.
Author Bio:
Philip Q Hanser is a principal with The Brattle Group. He acknowledges the contributions of Brattle colleagues Ryan Hledik and Ahmad Faruqui, as well as Ken Costello of the National Regulatory Research Institute. He also acknowledges editorial assistance from Heidi Bishop and Shannon Wentworth at Brattle. The opinions expressed in this article are Hanser’s and don’t represent those of The Brattle Group or its clients.
A purposeful approach to setting energy prices.
Ahmad Faruqui and Doug Mitarotonda
A new survey of energy industry experts reveals a surprising consensus on the size of the energy efficiency resource. Overall, energy efficiency is expected to lower electricity consumption by 5 to 15 percent, and natural gas consumption by 5 to 10 percent. These results debunk the notion that conservation is a fad. On the contrary, they herald a new beginning for energy efficiency.
By Ahmad Faruqui and Jurgen Weiss
As more natural gas is used for power generation, more volatility can be expected in gas markets. Demand response might provide a tool for managing that volatility, but is it technically feasible? And will gas customers accept it?
