An analysis of the Department of Defense deregulated electricity contract

Abstract

This investigation of the first Department of Defense (DOD) energy contract in California's deregulated energy market with New Energy Ventures, Inc. of Los Angeles, California is submitted as a Master of Science project under the advisement of Drs. CC Liu and M. Damborg, Professors of Electrical Engineering, University of Washington. the project stemmed from personal interest, professinal committment, and anticipated benefits to the United States Navy. The approach taken to evaluate the electricuty 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 cocluding with strong points and disadvantages of the electricity contract as it relates to the Department of Defense (DOD).