PG&E Competitive Bypass of PG&E Essay

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Overall energy supply is also increased, keeping prices lower in areas of heavy usage and also decreasing costs associated with distribution over wide networks. Demand can increase without the need for an expansion of existing power plants or the creation of new points of generation and distribution.

Counterarguments

Cogeneration has led to a definite loss of business for major utility companies, as some of their largest customers are bypassing their systems and causing profitability problems due to the low marginal costs of power production. This has led to perceived (and real) fiscal weaknesses in these companies as future profits and security become increasingly uncertain.

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In addition, cogeneration by businesses is generally not as efficient a means of electricity production as can be procured from utilities, and in many operations the amount of electricity needed cannot be created without a surplus of heat from cogeneration. Ultimately, however, cogeneration is a more efficient option for many businesses, and PG&E and other utilities should not be given advantages through the discouraging of cogeneration. These utility companies must become more efficient businesses, or perhaps a truly public utility system that is not operated for profit would be the best alternative......

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