AWS: the new Chicago Edison
Filed Under (Industry Biz News) by Admin on 14-12-2009
The key to running a successful large-scale utility is to match capacity (ie, capital) to demand, and the key to matching capacity to demand is to manipulate demand through pricing. The worst thing for a utility, particularly in the early stages of its growth, is to have unused capacity. At the end of the nineteenth century, Samuel Insull, president of the then-tiny Chicago Edison, started the electric utility revolution when he had the counterintuitive realization that to make more money his company had to cut its prices drastically, at least for those customers whose patterns of electricity use would help…
