Conventional vs. Market Transformation Energy Efficiency Programs

Masoud Almassi, Enbridge Consumers Gas

Keywords

Abstract

This paper will examine the relationship between the corporate culture of a utility and its ability to design and implement market transformation energy-efficiency programs. The conventional DSM initiatives often produce impressive results by focusing on mainly short-term measures that are associated with tangible energy savings. Even with limited access to energy efficiency dollars, utilities often rely on their own internal marketing and sales resources to design and implement DSM initiatives. The traditional utility culture is to "assume full control" and these initiatives are designed to accommodate this cultural bias. The market transformation programs, by contrast, are designed to induce lasting structural and behavioral changes in the market and they have to rely on third parties and a wide range of market participants for effective program implementation. These initiatives, however, often run counter to the utilities' traditional style of operation. It appears that as a pre-requisite, utilities need to engage in " internal corporate transformation" before they can become effective as agents of change in the marketplace.

This paper will provide a brief account of the industrial energy efficiency plan of Enbridge Consumers Gas, one of the largest gas distribution utilities in North America. This plan includes both conventional and market transformation initiatives with varying program designs and implementation practices. The intent of this analysis is to illustrate the contrasting characteristics of the two approaches and discuss their chances of success in relation to the utility's internal business culture.