Marie Curie, working in the laboratory with her husband Pierre. (AP/Wide World Photos)

What Is Dsm?

Demand-side management (DSM) refers to active efforts by electric and gas utilities to assist customers in modifying their use of energy. DSM encompasses a variety of activities designed to change the level or timing of customers' energy consumption. Most discussion of DSM focus on programs that help customers save energy by encouraging them to adopt energy-efficient measures or practices. The most well-known are rebate programs that lower the cost of energy-efficient appliances. Other DSM programs promote changes in the "shape" of a utility's load by shifting demand away from high daytime electricity rates when it is most expensive for utilities to generate electricity.

U.S. utility DSM programs can be divided into seven categories: general information, targeted technical information, financial assistance, direct installation of energy-efficient technologies, performance contracting, load...