Texas Lawmakers, Energy Firms Urge `Demand Auction' Strategy in California.

Publication: The Dallas Morning News (Dallas, Texas) (via Knight-Ridder/Tribune Business News)

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COPYRIGHT 2001 The Dallas Morning News

Byline: Jim Landers

May 31--WASHINGTON--Some Texas congressmen and energy companies are trying to help California avert blackouts and utility price shocks this summer with a market-based conservation strategy known as "negawatts."

A "demand auction" would let power consumers earn money by selling electricity they choose to conserve. It's aimed at big power users such as industrial electric furnaces.

If a California blackout appears likely and the state seeks more power in an auction, these consumers could sell their willingness to conserve for the same price an electric generator is selling supply.

Utilities could then transfer the unused power on their systems to California, pocket a fee and give the rest of the money to the conserving customer.

The demand auction concept was dubbed negawatts in the 1970s by Colorado energy conservation guru Amory Lovins. By creating a marketplace that rewards consumers for using less electricity, Mr. Lovins argued, negawatts (shorthand for negative watts) reduce the need for power plants.

The Texas effort,...

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