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Every electric utility forecaster predicts a tremendous increase in the amount of Non-Utility Generation (NUG) and Independent Power Production (IPP) activity. We will not bore the reader with yet another series of tables in that regard. But we were horrified to find, through a recent survey of IPP and NUG activity, that the utility-customer relationship is potentially threatened by a major portion of the proposed projects. This paper will illustrate how we expect the current and near term approach to IPPs and NUGs to develop and the consequences of what we expect will go wrong. The paper then illustrates how these errors could have been avoided and what specific steps both parties can take to be sure future IPPs and NUGs achieve desired results. Finally, the paper hypothesizes some less than excellent attitudes that could also be at t...
It is no longer uncommon to hear of utilities working more closely with their larger customers, establishing relationships that extend beyond the traditional commodity supplier concepts. What do some of these look like? How are they working? What have we learned? Several actual electric utility "case studies" will be reviewed illustrating foundational principals which include executive involvement and commitment, establishing the correct agendas, problem clearing mechanisms and resource requirements. We will demonstrate the double-edged sword of close customer contact and the best ways to mobilize the organization to adopt this change in corporate culture. Finally, this paper develops an implementation path the reader can use to begin or enhance the transition within their organization. The conclusion is that it is easier to begin in s...
Ho hum, another conference about energy conservation. Oh, let's call it a conference on energy technology, maybe that will get the juices flowing again. No, let's try issues this time. Sure, let's spend time thinking about how we can play fuel suppliers against electric utilities. That will get the adrenalin flowing. In fact, that will probably get me a few kudos's in my management circles. At least that type of thinking will get my management to let me go to this conference in Houston. Caught up in this type of logic? Is the bounce in your BTU chasing feet gone? Well, don't feel so bad. You're in good company and certainly not alone. But, you need a new perspective... a fresh approach, and that is what we will attempt to do in this paper.
Everyone is praising the daylights out of cogeneration these days. And while it may be the best energy system design, there are numerous questions that should be asked before anyone jumps on the bandwagon. We are not seeing enough sobriety and good old engineering conservatism. Since when are we designing systems without checking our assumptions? Where have professionalism, ethics and care gone? Why is it that only five of the past 100 cogeneration evaluations we reviewed were conservative and fair representations? This paper illustrates a step-by-step approach to checking the accuracy of a cogeneration project. Illustrations of typical errors and their consequences are also developed. Potential industrial and commercial users should find this list helpful in evaluating requests for proposals (RFPs). Electric and gas utilities could us...
Marketing seems to have come out of the utility closet once again, but it is a far sight different from that of the 1970s. While some are still on a “sell, Sell, SELL!” campaign, most are soberly looking at their customers from a different perspective. They are concerned about losing them to other service territories or seeing them vanish to domestic and foreign competition. There is a sense of a “strategic alliance” being sought by the most proactive of utilities in which they become allies of their customers. In this sense, the issue of how much these customers purchased from them vanishes into the shadows of the more important elements of the relationships. Oh sure, there still are some pushing technology as the customer’s answer. And there are others using incentive and other rate gambits to develop strategic load building. But the...
Hardly a day goes by that the threats to our environment are not brought to our attention. Whether you are following oil spills, groundwater contamination, global warming, chlorofluorocarbons (CFCs) or volatile organic compounds (VOCs), you must admit: environmental issues get an awful lot more attention than basic energy technology. Maybe it's because we associate more personal risk with our groundwater or air being polluted (e.g., Love Canal). Maybe it's because we have a large group of professionals (environmentalists) who get easy access to the media. Or maybe its because the energy technology business doesn't have the watchdog agency equivalent of the EPA. But for all these and more, environmental issues tend to be the major drivers of change. The analysis developed in this paper illustrates how the coming decades of increasing en...
Cogeneration proponents are still haling the wonders and marvels of cogeneration in the hope of convincing customers to adopt this energy option. Despite the hype, fewer and fewer cogeneration projects are being adopted. Why? Where is the business going? Is the bloom off the rose? The answer may be all too obvious. Historically (three to eight years ago), cogeneration was pursued largely because of inadequate or, in some way, failing boilers at industrial plants. These steam generators would have to be replaced or upsized anyway and customers used the combination of capital offsets and low operating efficiencies to justify cogeneration. In cases where these industrial firms did not want anything but the end result (i.e., added steam capacity at some reasonable price) they signed up with energy deal makers who sold them steam at some di...
Whether you are employed by an industrial or a large commercial establishment, you are now in a position to negotiate the price and service level of your energy sources. Utilities are busy designing creative methods to retain, shape and expand their business. Their customers are looking for the most economic, reliable and trustworthy supplier. This freedom to set prices and levels of service is limited to be sure, since these areas still are under significant regulatory overview, but there is a great deal of latitude. This paper will illustrate how the success you experience is predicated upon the manner in which you approach your options. Our objective is to offer candid advice to keep your activity productive and your business relationships healthy over the long haul. We will also discuss types of projects that are being used strictl...
Natural gas and electric utilities seem to be feverishly interested in expanding their business base, improving consumption load factors while attempting to preserve their customers' profitability. They have turned to technology for weapons in their battle, niche marketing in their plan and competitive selling in their posture. But are they missing the big picture? Where is the customer in all this? Does the customer see this as competition, service or a circus? Does current utility marketing thinking strengthen or weaken the customer-utility relationship? The purpose of this paper is to illustrate how utilities can market more effectively. With examples drawn from our experience serving 58 electric utilities across the United States, we will illustrate the guiding principles and potential traps in competitive marketing and customer se...
While the price of energy may have stabilized for the moment, the impact of several years of rate increases in the cost of energy, materials, and labor have made American industry re-evaluate their operations. Utilities serving clusters of industrial segments are seeing dramatic and rapid changes in their industrial load. At the same time, some electric utilities are experiencing rate shock as new plants are cancelled or rolled onto their rate bases. What will the impact be? What can industry do? How large a problem could occur if a utility or public utility commission merely assumed that their industrial base just had to “grin and bear it?” This presentation highlights the history of utility roles and recent experiences and generalizes the observations to a framework of roles a utility or public utility commission can play. The conclu...
Want to know more?If you want to know more about this cutting edge product, or schedule a demonstration on your own organisation, please feel free to contact us or read the available documentation at http://www.keep.pt/produtos/retrievo/?lang=en