NUGs & IPPs: The Utility-Customer Relationship

Abstract

Every electric utility forecaster predicts a tremendous increase in the amount of Non-Utility Generation (NUG) and Independent Power Production (IPP) activity. We will not bore the reader with yet another series of tables in that regard. But we were horrified to find, through a recent survey of IPP and NUG activity, that the utility-customer relationship is potentially threatened by a major portion of the proposed projects. This paper will illustrate how we expect the current and near term approach to IPPs and NUGs to develop and the consequences of what we expect will go wrong. The paper then illustrates how these errors could have been avoided and what specific steps both parties can take to be sure future IPPs and NUGs achieve desired results. Finally, the paper hypothesizes some less than excellent attitudes that could also be at the root of the current situation.