Utilitites are now exploring demand-side management uses

The object of demand-side management (DSM) is to benefit both customers and utilities through controlling or modifying the customer's electrical usage. Customer behavior modifications can result in shifting, increasing, decreasing or changing a utility's load or load shape. DSM can achieve these desirable ends through peak clipping, valley filling, load shifting, conservation, load growth and flexible load shape. An estimated 60 percent of the cost of electricity is needed to serve peak utility system demand for generation, transmission and distribution. It is also estimated that 80 percent of savings from load and demand-side management can be derived from 20 percent of the customer base. Because of this, the growing need of many electric utilities is to shift loads away from peak periods. These utilities are encouraging customers to move more of their energy use to off-peak periods. This step can defer need for new generating units, purchased power, and even reduce starting and stopping costs for reserve units. Load management is concerned with both demand and total energy, as well as their relationship, and the object of conservation and load growth control is to modify energy use. On the other hand, the aim of load management is to influence end-usemore » electrical loads in order to reshape utility duration curves. This article describes the design of successful DSM programs, and the uses to which they can be put to the advantage of both the utility and the customer. 3 figs.« less