This paper derives the conditions for an electric utility's least-cost spending on demand-side management (DSM) programs. It also develops the terms of trade for power import and for subsidizing DSM in another utility. The conditions are illustrated using the cost data collected for two utilities in the Western United States. Our findings suggest an opportunity for a mutually beneficial exchange of DSM spending for electric power when the power 'exporter' operates under a DSM-spending budget constraint. Copyright © 1994 Published by Elsevier B.V.
CitationOrans, R., Woo, C. K., Pupp, R., & Horowitz, I. (1994). Demand-side management and electric power exchange. Resource and Energy Economics, 16(3), 243-254. doi: 10.1016/0928-7655(94)90008-6
- Demand-side management
- Electric power