The Evolution of Demand-Side Management in the United States

This chapter explores the history of DSM, focusing primarily on the U.S. demand-side management (DSM) origins due to the fuel crisis in the 1970s, the rapid decrease in annual electricity growth that flowed from the energy crisis, and further aggravated by nuclear power plant cost overruns. Complicating the design, implementation, and evaluation of DSM programs was the introduction of electricity markets in the 1990s. Even with DSM’s history of 40 years, there are substantial open questions regarding the need for DSM programs, how they should be structured, and how they coexist with electricity markets. DSM proponents must directly engage these questions and issues if DSM is to achieve its potential as a tool to address critical energy, environmental, and economic needs.