UTILITY REBATES FOR EFFICIENT MOTORS - THE OUTLOOK FOR DEMAND-SIDE MANAGEMENT

Since 1987, many electric utilities throughout North America have been actively promoting demand-side management (DSM), the attempt to conse rve fuels and postpone costly generating capacity increases by encoura ging customers to use more efficient electrical equipment, including m otors. One popular DSM program has been utility payment of cash rebate s to purchasers of more efficient motors, Today, such payments face ex tinction in a rapidly changing utility economic climate based on dereg ulation, How rebates originated, the basis for such payments, how succ essful rebate programs have been, and what the future holds for them a re the subjects of this paper.