Utility Sector Impacts of Reduced Electricity Demand

This report presents a new approach to estimating the marginal utility sector impacts associated with electricity demand reductions. The method uses publicly available data and provides results in the form of time series of impact factors. The input data are taken from the Energy Information Agency's Annual Energy Outlook (AEO) projections of how the electric system might evolve in the reference case, and in a number of side cases that incorporate different efficiency and other policy assumptions. The data published with the AEO are used to define quantitative relationships between demand-side electricity reductions by end use and supply-side changes to capacity by plant type, generation by fuel type and emissions of CO2, Hg, NOx and SO2. The impact factors define the change in each of these quantities per unit reduction in site electricity demand. We find that the relative variation in these impacts by end use is small, but the time variation can be significant.