Since 1986 ANCO has designed and implemented several energy conservation programs for major electric utilities. The reductions in power load achieved by these programs total nearly 500 MWe. This is the equivalent of deferring the construction of one new advanced design nuclear power plant.

These programs promote conservation on the customer’s side of the meter. For this reason, they are referred to as Demand Side Management (DSM). The underlying concept is that it is more cost effective for a utility to provide financial incentives (in the form of rebates and equipment subsidies) to its customers to avoid adding a kW of demand than to build the new capacity to generate it.

ANCO’S MULTI-UTILITY PROGRAMS

ANCO is in the sixth year of implementing the two largest DSM programs in the U.S., Consolidated Edison of New York’s "Enlightened Energy" and Wisconsin Electric’s "Smart Money" programs. ANCO worked with each utility to design the DSM programs and directs nearly 100 professional staff, who work with utility engineers to implement the programs.

To further illuminate the DSM issue, ANCONEWS recently interviewed Dr. George E. Howard, ANCO Chairman, Joe Conlon, ANCO Project Manager for the Consolidated Edison of New York program, and Dr. W.G. (Biff) Bentley, President of the ANCO Consulting Group, and director of the Wisconsin Electric program. We asked them to comment on DSM, its benefits, and its future.

Dr. Bentley observed that, "DSM has captured the attention of many utilities in the U.S. and worldwide. The potential for avoiding, or at least delaying the expense and (let’s face it) travail of building a new plant is compelling because this is not a Zero Sum Game. Everyone benefits from a well designed and managed DSM program. The customer saves energy and, thanks to the utility’s incentive payment, realizes a prompt payback on his investment in new equipment. The utility avoids the cost of a new plant. And, finally, the community gains because fewer resources are expended, and environmental pollution is reduced."

"In the future, expect increased activity in the following areas; encouragement by regulatory bodies, interest and understanding by customers, creative actions by manufacturers and distributors, and further adoption of DSM by foreign entities. This is an activity that will persist for much of the next decade.

Joe Conlon adds, "The breadth of technologies involved is impressive. These include hot and cold thermal energy storage, solid-state lighting ballasts, variable speed drives, anticipatory HVAC systems, industrial process modification, peak shifting, controlled use of natural lighting, as well as high efficiency lights, motors, HVAC, insulation, and window treatments."

EFFORTS EXPANDING TO MICHIGAN

Dr. Howard announced that "ANCO was recently selected by Consumers Power of Jackson, Michigan, to conduct its commercial/industrial DSM program. The program requires an 18-month DSM effort with goals to reduce demand by 170 GWh over the life of the DSM improvements. We are now launching an 85 man-year effort in Michigan to assure that program goals are met. There are monetary incentives for meeting these goals, and penalties if the goals are not met, imposed by the Public Utilities Commission on Consumers Power, with ANCO sharing in the program risks and rewards. The ANCO/Consumers Power team is intent on meeting these goals."

So ANCO will soon "complete" its second 500 MWe DSM power plant.