Demand-side management opportunities through business system and technology integration

Demand-side management (DSM) made its first significant entree to the power industry in the late 1970`s as an alternative for offsetting or deferring conventional generation. The DSM role as a {open_quotes}negawatt{close_quotes} resource is principally responsible for the evolution of cost effectiveness models and integrated resource planning techniques that strongly emphasize a supply-side orientation. Unfortunately, the supply-side orientation masks the expanded role that DSM technologies can play as catalysts in modernizing and re-engineering power industry customer service and system operating practices. A supply-side perspective fails to recognize that utilities are fundamentally in business to provide energy services-something that DSM is very capable of supporting. DSM can provide utilities with technology and information resources that simultaneously integrate business and planning systems with day-to-day system operations. An integrated (also known as a systems engineering or re-engineering) approach to DSM, can also provide utilities with strategic, operational, and competitive benefits that are currently being overlooked.