The Utilities' Role in Conservation and Cogeneration

The electric utility industry is uniquely qualified and positioned to serve as an effective 'deliverer' of energy conservation services and alternative energy supply options, such as cogeneration, rather than merely as a 'facilitator' of their development by other parties. Amendments to current legislation are required to remove the barriers to utility participation and to provide electric utilities with appropriate incentives to deliver conservation and alternative power sources in their own self-interest. That utility self-interest can take the form of benefits to its ratepayers or stockholders -- or, optimally, to both. Moreover, adequate, reliable and economical electric energy from the utility grid is vital to our nation's economic well-being. A financially healthy electric utility industry is essential to the realization of this goal. Therefore, as we continue to refine a national energy policy, we must give this requisite careful attention when developing positions on conservation, cogeneration, equitable rate design, and all of the other elements, for they are inextricably related.