Apogee Interactive CEO Says Demand Response Trading Still Embryonic But Viable Business.Business Editors & Energy Writers ATLANTA--(BUSINESS WIRE)--Nov. 8, 2001 Even after 150,000 MWh of peak load reductions this past year, Apogee apogee (ăp`əjē), point farthest from the earth in the orbit of a body about the earth. See apsis. The farthest point. Interactive's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Joel Gilbert says the price-responsive demand business is still embryonic em·bry·on·ic or em·bry·on·al adj. Of, relating to, or being an embryo. Embryonic In the life cycle of the round worm, a very early life stage occurring within the uterus of the female round worm. . Citing the fact that today's regulated retail electricity markets interact only occasionally with the competitive wholesale markets, "Trading demand response doesn't get included until market inefficiencies reach drastic proportions like we saw with $600 and higher MWh prices in the Northeast this year." Keynoting today's National Association of Energy Service Companies' (NAESCO NAESCO National Association of Energy Service Companies ) 18th annual conference, Gilbert reported that while energy companies are rethinking traditional load management approaches and moving towards traded agreement designs, "The current belief that adequate generation reserves are back again has many believing the power crisis may be over. This is a dangerous trend since it ignores the reality of inadequate transmission resources that can bottleneck A lessening of throughput. It often refers to networks that are overloaded, which is caused by the inability of the hardware and transmission lines to support the traffic. It can also refer to a mismatch inside the computer where slower-speed peripheral buses and devices prevent the CPU systems and cause zonal shortages," he said. Gilbert acknowledged that demand response, like all other commodities when first traded, currently fails to have standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. and efficient market clearing mechanisms. However he foresees a new market where customer demand response capabilities will be aggregated and traded as full competitive alternatives to power supply, complete with open protocols for measurement, verification and settlement of the transactions. This will enable NAESCO members to provide a multitude of valuable services. He applauded the energy service companies' commitment to advancing the energy efficiency of customer facilities. Gilbert cautioned against regulatory promises to open energy markets while guaranteeing customers savings from day one. "Guaranteeing a discount to customers simply insulates them from the price signals necessary to create open, efficient market responses," Gilbert maintains. "The value chain can only be enabled by free market forces, which will eventually provide customers with a spectrum of price-risk differentiated products and services. These will range from direct load control, distributed generation Distributed generation generates electricity from many small energy sources. It has also been called also called on-site generation, dispersed generation, embedded generation, decentralized generation, decentralized energy or , and load management strategies to long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. efficiency investments made in response to market prices and risks." Apogee Interactive (www.apogee.net) introduced one of the very first Internet-based demand response trading platforms in the US back in 1998, called The Demand Exchange(R). Today, it operates the largest demand response aggregation system in use in the US with almost 3,000 MW of resource and about 1,000 customers. The company was also the first to implement "demand bidding" this summer in California, where customers initiate load reduction offers rather than utilities. Apogee has now expanded The Demand Exchange to provide a single, unifying interface where clients can manage voluntary load reduction programs, demand bidding, real-time pricing tariffs This is a list of tariffs and trade legislation:
For 18 years, NAESCO (www.naesco.org) has represented the energy services industry and has led efforts to devise innovative policies in a changing regulatory environment and ensure sound policies that promote cost-effective delivery of comprehensive energy services to customers. |
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