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1. In many jurisdictions, regulators and firms have introduced demand-side management (DSM) and conservation programs. These programs are designed to encourage consumers to reduce their consumption of electricity, especially in peak periods. For instance in the City of Calgary, Enmax-the municipal-owned electricity supplier-has used an advertising campaign to try and convince con- sumers to reduce their power consumption during the "electricity rush hour." Other aspects of such programs include encouraging consumers to switch to alternative technologies by subsidizing the use of energy conserving appliances, light bulbs, etc. Are DSM programs substitutes for peak-load pricing? Under what circumstances are DSM programs socially inefficient? Efficient?
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