Analysis of the Department of Defense Deregulated Electricity Contract

摘要

This investigation of the first Department of Defense (DOD) energy contract in California's deregulated electricity market with New Energy Ventures, Inc., of Los Angeles, California, is submitted as a Master of Science project under the advisement of Drs. C. C. Liu and M. Damborg, Professors of Electrical Engineering, University of Washington. The project stemmed from personal interest, professional commitment, and anticipated beneficial application to the United States Navy. The approach taken to evaluate the electricity contract is based on the current California market structure. Specifically considered are the contract specifications; the pricing elements of the contract and how they are related to the present deregulated market; a zero- risk versus shared-risk savings comparison; and concluding with strong points and disadvantages of the electricity contract as it relates to the Department of Defense (DOD). included in section two is a brief history leading to the current deregulation, and a basic description of the current California market structure. Section three describes the electricity contract between the DOD and the power marketer, New Energy Ventures, Inc. The contract pricing elements are listed in section four. Section five examines the expected savings comparison between the government and an average commercial consumer. Conclusions on the advantages and disadvantages of this electricity contract are summarized in section six.