Steam-injected gas turbines and electric utility planning

The steam-injected gas turbine is a power generating technology which could help bring stability to electricity prices. In addition the availability of short lead-time, low capital cost, high efficiency technologies like the ISTIG could help reduce risks in utility planning making feasible much more aggressive utility end-use conservation programs. For the longer term, the added possibilities of the deregulation of power generation could lead to a conversion of utilities into energy service companies which buy power as needed at the least cost from independent producers and sell energy services - the least costly mix of electricity purchases and investments in energy efficiency improvements on the customer's side of the meter as needed to meet the customer's needs. The technologies required to support such a fundamental change in utility activities are either at hand or could be quickly brought to commercialization. The challenge for policy-makers is to remove institutional obstacles and evolve a new system of incentives for utilities that makes it attractive for them to pursue least-cost energy strategies - in short to bring out institutions up to date with our technology. 46 references, 3 figures, 3 tables.