Number of utilities offering onsite power/distributed generation set to explode, study finds

ATLANTA, June 18, 2002 — Responding to a growing market, considerably more utilities are planning or considering adding onsite power/distributed generation (DG) to their product/service line this year than last.

In 2002, 34% of utilities surveyed said they were currently in the planning stages of or considering adding within the next two years an onsite power or DG offering for C&I customers, compared to 18% reporting such in early 2001, according to Chartwell research published in Onsite Power for C&I Customers, a new industry report released this month.

Chartwell’s 2002 survey of 50 energy companies regarding their C&I product/service offerings also reveals that utility size has the most bearing on whether it offers onsite power. Of those utilities with more than one million customers, 78% offer onsite power to their C&I customers, compared to 38% of all utilities of all sizes.

The market drivers for DG and onsite power are strong and growing. Potential C&I market niches include health care, financial, electricity- intensive manufacturers, agricultural customers and waste/wastewater treatment facilities. Within these industries and others, utilities and energy companies have served as third-party providers of onsite power, consultants, equipment vendors, and outsourcers.

The report provides specific examples of utilities’ successful ventures in providing onsite power or distributed generation. It also offers two detailed case studies told in Chartwell’s popular format based on in-depth interviews with utility executives.

Onsite Power for C&I Customers, which is available from Chartwell, is part of The Chartwell New Products and Services Research Series, an ongoing information service centered around specific products or services and related issues in the utility and energy services marketplace. Membership in the research series is available.

For more information about the ongoing Research Series, the Report on Onsite Power for C&I Customers, or the products/services database, please call Juli Collins at (800) 432-5879, or (404) 237-9099.

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