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Introduction: The Case for Transformation


The economic and environmental benefits resulting from transforming the electric power system are dramatic. However, these benefits will only be realized if the current outdated regulatory structure is reformed (link to policy framework). New policies are needed to empower consumers, engage communities, attract private investment, encourage innovation, and hold utilities accountable. In addition, these benefits will not be realized unless regulators, utilities, and city leadership join together to develop measurable smart grid goals and plans for achieving these goals, as well as, community scale prototypes to provide for refinement of initial plans and policies.

  2000 --2025--
Parameter Baseline Business As Usual (BAU) Enhanced Electric Power System Improvement of Enhanced Productivity Over BAU
Electricity Consumption (billion kilowatt hours (kwh)) 3,800 5,800 4,900 - 5,200 10% - 15% reduction
Delivered Electricity Intensity (kwh/$GDP) 0.41 0.28 0.20 29% reduction
% Demand Reduction at Peak 6% 15% 25% 66% increase
% Load Requiring Digital Quality Power <10% 30% 50% 66% increase
Cardon Dioxide Emissions (million metric tons of carbon) 590 900 720 20% reduction
Productivity Growth Rate (%/year) 2.9 2.5 3.2 28% increase
Real GDP (billions of dollars, 1996) 9,200 20,700 24,300 17% increase
Cost of Power Disturbances to Businesses (billions of dollars, 1996) 100 200 20 90% reduction