Using DSM to Help Meet Clean Air Act Requirements: A Case Study of PSI Energy

Research Report U946


Steve Nadel, Jennifer Jordan, Christopher Holmes, and Kevin Neal


To meet Clean Air Act requirements for 2000, PSI Energy, a major midwestern utility, must reduce its sulphur oxide emissions by 30% below 1990 levels or buy additional emission allowances. This report discusses how current and proposed DSM programs can play a substantial role in PSI's Clean Air Act compliance strategy by reducing emissions and saving money that can be used to fund other clean air initiatives. It includes results of a detailed dispatch analysis on the role of DSM in PSI's generating mix. Implications for other midwestern utilities are also discussed.