For utilities in a competitive environment, here is an approach that lets managers use demand side management (DSM) as an effective tools for retaining customers-while reducing all customers` costs. The promise of DSM has always been that both participants and non-participants would pay lower energy bills than without DSM, but this may not be true. Outlined is a win/win approach for installation of DSM measures with the future savings on usage shared between the utility and consumer. This approach offers an opportunity to acquire the benefits of DSM with minimal impact on non-participating customers.
