I agree with the importance of reducing peak demand. Peak demand reduction is as important as overall demand reduction, and both normally occur at the peak demand time of day. Both types of demand reduction lead to less need for capacity or to a slower growth in capacity than would otherwise exist. At the cost of a direct cash investment in demand reduction incentives, often while carrying significant cash reserves that aren't getting them much return anyway, the utility company can save on future growth in capacity and gain options -- e.g. the flexibility to install a more efficient plant that takes longer to build, or to finance a plant when interest rates are lower, etc. etc.
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