Please Blame the Deregulation and Regulation Fiascos Parte 35

Gentlemen,

Steve has added a very good comment once again.

I missed the ironic nature of Len's comment, if there was one. I thought he was talking about Hogan's long captivity after the death of Schweppe. I am very proud to say that I am captive of no one Yet.

Reading Steve argument about what conventional wisdom have told that only commercial and industrial are responsive, I remember that Bob Lieberman found out that convencional wisdom is wrong. Please look a the single 4 paragraph comment to Strategic Perspectives on Utility Enterprise Solutions, by Warren Causey, Vice President, Sierra Energy Group comment. This is the insight in 2 of the paragraphs:

[comment starts.] With the presentation " Ruminations on Demand Response - a view from Chicago," Bob Lieberman has given a new hope to residential real-time pricing based on the existence of a risk premium, part of which responsive customers can pocket. Bob adds that conventional wisdom regarding that real-time pricing of residential customers won’t work was proven wrong. Lieberman identifies 4 problems to be overcome develop the market: 1) Short term thinking; 2) Who's job is it?; 3) Overcoming the "DR is about protection system "mindset; and, 4) Explaining to customers what we are talking about and what's in it for them.

By taking a close look to "An Alternative Business Case for Demand Response," my comments to Why We're Selling Advanced Metering All Wrong... And How to Sell It Right and the discussions on "Energy Bill 2005 - A Waste of Time?" and "2006: New Challenges and Opportunities in the Brazilian Electric Energy Arena" all 4 problems can be addressed by competitive retail marketers, with innovative business designs under their own Retailers Enterprise Solutions. The result will be a new paradigm of the electricity industry for the new global economy, where increased efficiency will result. Every customer will be able to chosse value added from electricity and the mayority of customers will have lower prices, after a while. [Comment ends.]

My earlier comment to Steve answered issue 2 (the retailer will be in charge) and 4 (education and empowerment). Issue 1 is the restructuring issue: we need a paradigm that is trully consistent in the long run for the winning market. Issue 3 is better synthesized by EPRI's President above. This is the unconventional wisdom mental model.

Please take a look at "A Dominican Strategy" is Featured in The Business Scene Section of the IEEE Power & Energy Magazine.

I will be out of the discussions on a short vacation from tomorrow until next wednesday.

Regards,

José Antonio