Energy Planning: Use Deregulation Also as a Tool

Abstract

In the 36 years since the oil embargo, a systemic approach to energy
management and a comprehensive national program should have been
very common features in our lives today. Unfortunately, efforts are still
sporadic among most of the industry captains managing our energy re-
sources. National programs mandated by executive orders are often met
with resistance or a legally minimum level of compliance. For organiza-
tions with an effective program in managing their energy resources, it
is mostly developed and practiced by isolated initiatives of individuals
or groups within the organization. This article will try to make a case of
how the overall culture needs to change, because if the 70s wake-up call
in embargo is not properly heeded, deregulation may be a ruder second
shock to many facility owners, energy planners, managers, and corporate
suites. We have not seen the full impact that deregulation can have as yet;
it will come as demand outpaces supply by a margin approaching about
5%. Deregulation will cause both positive and negative experiences, as has
been seen in different parts of the country, and will evolve through these
experiences as the market stabilizes. The driving theme of the article is
that through these changing times, deregulation can pay good dividends
to those who use the opportunities as tools in new market dynamics.