| Independently Powered Energy News

My boyfriend turned off his hot tub a few months ago. As much as he loves to soak while watch-Richmond Bay, he was sick of paying $200 a month for the energy required. He's still a sexy guy, and although he was hot when he had the hot tub bubblin', now he has extra money for romantic dinners and 800-thread-count sheets. Just as he wouldn't considered turning off his hot tub of fun only last summer, the climate change economy, and the perception of energy consumption is changing. The spectacular inability to significantly reduce peak demand during last summer's heat wave has a new batch of companies slavering at opportunity. These businesses specialize in stop-ping power use on call. Although it is a tough market sell because of its lack of sexiness, as the ad agencies say, shaving load to create negawatts is a growing business. These demand-response companies are becoming established as a result of recently developed regulatory programs, much as renewables companies have in response to the renewables portfolio standard and agency subsidies. They are also becoming a part of utilities' energy portfolios on par with renewables, nuclear, and fossil-fueled supplies. During last July's heat storm, then-current demand-response programs run by utilities needed something along the lines of anti-peak Viagra to tame surging power use. (Those programs traded lower rates for customers who signed up in exchange for their promise to cut back on electricity use as needed, included when rolling blackouts loom on the horizon.) In the wake of the near-blackouts last summer, the California Public Utilities Commission quickly ruled that Southern California Edison must build more supply. Regulators on November 30, 2006, also required Edison to have a third-party demand-response aggregator program. In addition, the commission ordered Edison and Pacific Gas & Electric to run a request for proposals or seek bilateral contracts for new demand-response programs. In a few short months, state utilities have contracted for hundreds of negawatts through third parties. It should be good for ratepayers because these companies don't get paid if they don't produce the negawatts on demand. It should be good for the grid because these companies are motivated to produce results. It will be good for the environment because fewer high-polluting peaker plants will be called upon, or newly built, to serve those few crucial days each year when Californians just can't live without an air conditioner. Two demand-response companies recently went public - EnerNOC and Comverge. A third, Energy Curtailment Specialists, has California connections. All are based on the East Coast. "We're much more creative in the terms that we offer" than utilities, Energy Curtailment president and chief executive officer Glen Smith told me. "Let's say you're a winery. You're less likely to be able to deliver [demand-response] in September-October" when the grapes are being harvested and processed, noted Smith. "With us, you can have aggressive curtailment from June to August, but not in October." The company specializes in manufacturing-level cutbacks. It notifies its customers on a day-ahead basis. It joined the California Manufacturers & Technology Association last month but has yet to have any direct contracts with state utilities. Comverge launched its initial public offering March 27. The company won a 100 (n)MW contract with San Diego Gas & Electric, according to Bob Chiste, Comverge president and chief executive officer. Last month, it announced a contract with PG&E for 50 (n)MW. The CPUC still has to approve the deal. Until the California contracts, this company focused on installing air conditioning cycling devices in residences. Chiste said they have 4.5 million of their paging technology devices installed so far, representing 350 (n)MW. "The ISO has a control button to cycle load. We lump them through ZIP codes or sub-stations or supply areas," he added. Comverge's contracts are limited to certain hours, usually during "super peak" demand. The California contract should push the company into more commercial and industrial areas. EnerNOC filed its initial public offering in February. Last month, it announced a 40 (n)MW con-tract with Edison and another 40 (n)MW contract with PG&E. This company focuses on larger consumers' lighting, pumps, motors, and air conditioning, using technology that cuts back electricity use remotely with-in a half hour of dispatch from the grid operator. Perhaps doing nothing can become sexy, when it saves ratepayer money and does less harm to the environment. Instead of shopping at Macy's, for instance, we could simply lie around on the beach or in the back-yard - or telecommute in our Victoria's Secret pajamas to keep the economy going. That does sound pretty appealing after all.

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