@article{Brennan:10615,
      recid = {10615},
      author = {Brennan, Timothy J.},
      title = {Demand-Side Management Programs Under Retail Electricity  Competition},
      address = {1998},
      number = {1318-2016-103508},
      series = {Discussion Paper 99-02},
      pages = {18},
      year = {1998},
      abstract = {Demand-side management programs comprise subsidies from  franchised electric utilities for the purchase of  high-efficiency appliances; e.g., air conditioners.  Competition in power generation threatens the viability of  these programs. However, it should also reduce the warrant  for them. Under regulation, the justification for such  programs depends, somewhat paradoxically, on below  marginal-cost pricing. Eliminating regulation should permit  pricing flexibility to discourage excessive on-peak energy  use. It should also eliminate the assurance of returns that  may have encouraged overbuilding of generation capacity.  Entrants and incumbent utilities should find it easier to  offer "energy services," i.e., to bundle electricity with  appliances, if consumers are too myopic to realize the  benefits of increasing energy efficiency. Environmental  degradation remains a problem, but competition can improve  the performance of incentive-based regulations (e.g.,  permit trades), reducing the value of DSM as a  supplemental, second-best alternative.},
      url = {http://ageconsearch.umn.edu/record/10615},
      doi = {https://doi.org/10.22004/ag.econ.10615},
}