You are the chief executive officer (CEO) of a utility company in Arizona that is considering whether to expand its electrical capacity to keep up with demand

Question

You decide that it would be wise to delay expanding your electrical capacity for as long as possible by getting your customers to reduce their electrical use. Explain how your company would go about doing this.

Answer 1

My company would encourage customers to use electricity more efficiently by providing rebates on energy-efficient lightbulbs, energy-efficient appliances, and rooftop solar panels that convert sunlight into electricity. Because Arizona has a dry climate, we would also encourage people (perhaps via rebates) to replace their air conditioners with swamp coolers, which are much more energy efficient in dry climates. We should also educate people about strategies for energy conservation, especially during times of peak demand when our power plants are running at full capacity. We could spearhead educational outreach programs that teach easy-to-do conservation strategies such as not running dishwashers until they are fully loaded. We could invest in modernizing our grid system so we can keep track of peak versus off-peak electricity usage, which would allow us to charge more for electricity used during peak periods, thus motivating people to wait until off-peak hours to do things like dry clothes and run dishwashers. Ultimately, these negawatt programs (investments that improve energy efficiency and conservation) would allow us to use existing facilities more efficiently rather than build new ones.