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> Why do utilities encourage customers to become more efficient when they could sell more power and make more money instead? Depending on where you liv
by MichaelNolan 3y ago
> Why do utilities encourage customers to become more efficient when they could sell more power and make more money instead?
Depending on where you live, the State likely requires the utility to spend some portion of its revenue on efficiency. Valois a prime example, overall the state uses far less electricity per person, which is at least partially because of decades of efficiency initiatives.
And secondly, if utilities can get their customers to be efficient at the right time of day, the utility will make more money overall even if the total demand decreases.
Lastly, most publicly regulated utilities make very little on selling electricity, they instead make a guaranteed profit on capital investment. So total kWh sold is less important overall.
- triceratops 3y ago> most publicly regulated utilities make very little on selling electricity, they instead make a guaranteed profit on capital investment. So total kWh sold is less important overall That's what I thought too. Building new capacity is expensive and time-consuming; utilities would rather run their existing capacity at full blast and reduce demand. Which means these cryto miners haven't financed 2.3% additional generation capacity in any meaningful sense. Unless they have special contracts with utilities to specifically fund new power plants and transmission.