Federal Electricity: Retail Competition Could Create Savings for the Department of Defense

reportActive / Technical Report | Accesssion Number: AD1167651 | Open PDF

Abstract:

The federal government is the largest consumer of electricity in the United States, and the Department of Defense (DOD) has the largest dollar share of this consumption. For fiscal year 1996, DOD reported expenditures of$1.2 billion on domestic consumption of 23.4 billion kilowatt-hours (kWh) of electricity at an average price of 4.9 cents per kWh. Electricity restructuring, at the retail level-which is being implemented or discussed in all 50 states and the District of Columbia and is being considered by the Congress-is expected to allow retail customers, including DOD, to purchase electricity in a competitive market, much as customers now can choose among different long-distance telephone providers. Buying electricity on a competitive basis is expected to lower the price of electricity paid by retail consumers.

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Collection: TRECMS
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