Open AccessA Case Study of CPS Energy’s Management of Disruptive Forces
Author(s) -
John Soltau,
Ryan Lunsford
Publication year - 2017
Publication title -
case studies in business and management
Language(s) - English
Resource type - Journals
ISSN - 2333-3324
DOI - 10.5296/csbm.v4i2.12127
Subject(s) - incentive , monopoly , revenue , business , distributive property , energy (signal processing) , industrial organization , efficient energy use , economics , microeconomics , environmental economics , engineering , finance , statistics , mathematics , pure mathematics , electrical engineering
Two major forces continue to drive disruption in the utility space; technological innovation in the form of distributive energy resources (DER), and energy efficiency/demand response (EE/DR). These forces drive down demand which, in turn, directly leads to decreased revenues for utility companies. As a result, the utility responds by seeking higher rates, which decreases demand and increases economic incentive for DER and EE/DR (Kind, 2013). These two disruptions continue their influence as these increased rates lead to lower customer satisfaction levels, incentivizing the adoption of additional DER and EE/DR products, perpetuating the cycle. As a municipal monopoly CPS Energy (CPSE) faces a number of real threats and opportunities as they ride this wave of disruption. This case study will analyze the impact of the DER and EE/DR forces on CPSE and their opportunities.