Surge in Demand for Madison Gas & Electric's Standby Generator Program

Business Wire, Sept 22, 2005

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c24682) has announced the addition of Utility Standby Generator Programs to their offering.

Many electric utilities have been reluctant to build distributed generation (DG) businesses, viewing DG as a threat rather than an opportunity. However, several utilities have launched DG initiatives in the past few years, using standby generators to provide customers with increased power reliability. Typically, these programs offer to install, own, and operate generators at customers' sites, while the customer pays a monthly fee in return.

In addition to providing customers with improved reliability, some utilities are obtaining other benefits from such programs. These include helping to unload overloaded distribution networks, avoiding the need to start combustion turbines to meet peaks in demand, continuing to provide power to customers while the utility works on distribution networks, and enabling customers to move on to interruptible rates.

The market research shows that end users assign a high level of importance to improving reliability. As a result, some utilities have had plenty of take-up for their programs. For example, Madison Gas & Electric's program is oversubscribed, and there is a waiting list to join the 50 customers already signed up for the company's standby generator program. Other utilities have made more modest starts, slowly growing their programs and incorporating lessons learned along the way.

This report analyzes seven utility standby generator programs and looks in detail at the program characteristics such as customer numbers, pricing, customer propositions, what the generator is used for, and contract length. It identifies success factors and lessons learned and it also examines market research findings to better understand end users current standby generator practices and their desires and wishes regarding power reliability.

Companies mentioned include:

--Distributed Power Coalition of America

--Madison Gas & Electric Co.

--DTE Energy Technologies

--Portland General Electric

--Progress Energy

--Alliant Energy Integrated Services

--Santee Cooper Power

--Gainesville Regional Utilities

For more information visit http://www.researchandmarkets.com/reports/c24682