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The New Rules for Purchasing Electric Power
"The creation of new rules for purchasing electric power is largely an outgrowth of several recent developments affecting the electric utility business: -deregulation has created a competitive business -demand side management has grown in stature to rival supply side challenges -power rates have become marketing tools These developments affect the industrial sector more than others, largely because of its size and electricity consumption per customer. Industry today sees these changes manifested in a variety of ways, several of which represent alternative power costs. These include: -conventional published tariffs -negotiated rates -utility incentive programs -cogeneration A key conclusion that may be drawn from these trends in that traditional barriers between utilities and industries are breaking down. Utilities are becoming increasingly marketing-oriented rather than sales-driven. Interestingly, the choices available can yield economic benefits on both sides of the meter. This is particularly evident in electric-intensive industries, such as chlor-alkali production or air separation. This paper reviews efforts by selected utilities to work jointly with their industrial customers in simultaneously addressing utility load shaping objectives and industry demands relative to quality of service and cost. Air separation and plastics fabrication are highlighted as two very different kinds of industries that have been addressed by utility-sponsored programs to date."
Stern, K. (1989). The New Rules for Purchasing Electric Power. Energy Systems Laboratory. Available electronically from