Conservation programs can cut load-growth uncertainty for electric utilities

Electric utilities face a variety of uncertainties that complicate their long-term planning. Load forecasting models are used to assess the likely range in future load growth as a way to help manage uncertainties. A complementary approach involves implementation of strategies that inherently reduce uncertainty. Conservation programs that improve efficiency of new residential, commercial, and industrial facilities can both provide cost-effective resources and reduce uncertainties associated with future load growth. Because standards and rebates have different effects on consumer efficiency decisions, standards reduce uncertainty more than do rebates.