Once the twin disincentives to DSM of linked profits and sales and DSM program costs are removed, in many cases it is still necessary to offer incentives in order to coax utilities into providing DSM programs to their customers. The Wisconsin Public Service Commission (Wisconsin PSC) experimented with one type of DSM incentive when it directed Madison Gas & Electric (MG&E) to participate in a competition to provide DSM services to its customers.
"Credible estimates indicate that cost-effective technologies available today have the potential to cut the nation's electricity use by 30% - 75% without lifestyle changes or reduced growth of the GNP."
(Gellings et al., 1990; within Nadel, Reid, and Wolcott, 1992)
|(Dollar values reflect "conservation value.") Source: Electric Week, 1990|
1) The competition stimulated significant increases in DSM programs;
2) The potential for monetary award was not as powerful a motivator as winning or losing;
3) Each of the competitors spent money on cost-effective demand-side measures and achieved significant savings.