The Nutty Professors: Bill, Fred and the Strange Case of Demand Response
Imagine walking into a new Honda showroom and telling the salesman that you won’t be buying that new model this year, as you often do.
And by the way, before you kick the tires one last time and stroll out the door, you ask if the dealer would be so kind as to write you a check for the full sticker price of a brand-new Accord, fully loaded, since, by resisting the urge to buy, and making do with your tired old vehicle for one more year, you have made sure that the dealership now will have one more car in its inventory than it otherwise would — a benefit for the dealer every bit as tangible as if the factory had shipped one extra car for free to the showroom floor.
Sound nutty? Well, on Monday, September 13, the FERC Staff will hold a conference to debate this very idea – applied not to new model cars, but to wholesale electricity. (Notice of Technical Conference, FERC Docket RM10-17.)
Posted: September 10th, 2010 under Conservation, Demand Response, Electric Utility Regulation, Energy Efficiency, Energy Markets, FERC, ISOs, LMPs, Locational Marginal Prices, RTOs, Ratepayer Benefits, Smart Grid.
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