The Utility-Industry Partnership for Economic Development: A Troubled Marriage?

Abstract

The electric utilities' relationship with their industrial customers and the importance of the product and services that they offer, uniquely position them as an influential player in the economy of the communities that they serve. Traditionally, in partnership with public development agencies, electric utilities have taken an active role in the local and regional economies through financial and educational incentives to help improve the comparative advantage and attractiveness of their local industries through more favorable energy rates and greater efficiency improvement options. The changing economic, technical, and regulatory environments are now prompting electric utilities to adopt broader energy management strategies that include rate minimization efforts through retention of existing loads and strategic promotion of new loads through industrial recruitment programs and promotion of electrotechnologies. This paper examines several of these strategies, explores the mechanisms for their promotion and assesses their effectiveness.