Death Spiral: Energy Efficiency Blowing Up Utility Business Model

Climate Denial Crock of the Week

powersales

I posted the other day about Electric Utilitie’s Kodak Moment – the growing realization that we are in a technological paradigm shift that will destroy the business model electric generators have relied on for the last 100 years – and bring down any companies that don’t change fast enough.

All over the country, utility customers are finding ways to use less energy – not only generating their own, but using unglamorous but effective and ever-increasing pathways to greater energy efficiency.  I’ve pointed out for several years now, that even in an era of multiplying gadgets, power use continues to flatten or drop. (see graph above)

Building a new power plant these days in most states, because the cost is so steep, requires utilities to put those construction projects in the rate base, even before they begin producing power. As much as 5 years or more before. (10 or 15 in…

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