feasible less complex systems, which are highly cohesive, but lightly coupled between them [I1]: 1) A primary regulated power transportation service system (RPTSS) with a responsibility to serve the transmission and distribution of electricity of commercial quality (EoCQ); and 2) A complementary open market business system (OMBS) on the value chain generation, retail, pro-sumer (consumer that may produce). The expansion of the transportation network is to be done at least costs for the whole system, including customers’ electricity investments and operating costs, to enable the purpose of maximum social welfare in the OMBS. Such purpose helps electricity become affordable at the Bottom of the Pyramid [I2]. The verifiable breakthrough comes from changing the managing by averages in retail markets, under the price control business model (PCBM), to managing by “discovering new sources of profitability in a network economy… when the events are interconnected and interdependent (Hax and Wilde, the delta project)” through the development of Business Model Innovations by Second Generation Retailers (2GRs) under competition [I3-4]. In my article a Dominican strategy [I5], I described how customer oriented risk management makes “The Dominican Republic… one of the countries that is appropriately positioned to reap the benefits of demand response resources… investments.” As demand response, energy efficiency, and other customer electricity investments are interdependent, 2GRs can develop service plans that optimize customers’ needs, enabling maximum social welfare. Among key elements that set EWPC apart are: whole systems engineering; transparency of the spot pricing of EoCQ; complementing Dr. Fuller’s Global Energy Network design; the integration of transmission and distribution [I6].

Describe the critical need your solution addresses.

After completing the Stages of Transformation, Intention, and Formulation of the Generalized Design Process (Michael Ben-Eli, “Design Science: A Framework for Change”), EWPC is ready for the Stage of Realization to transform the power industry through a service-business market architecture and design. The value of electricity as a service-business is larger than the sum of the value of electricity as a service and the value of electricity as a business.

The principal result of this proposal is to elaborate the first draft of The EWPC Textbook (http://www.energyblogs.com/ewpc/index.cfm/2007/11/12/The-EWPC-Textbook ), to verify the trim-tab benefits through simulation and to define and promote the execution of a pilot project in a second step. This first step is to be financed with the price monies. Both steps will need committed leaders that participate in a virtuous team, with the aim to support an institutionalized EWPC market architecture and design in the final Stage of Operation.

The preliminary scope of activities of the plan, to be updated with the virtuous team of experts, is as follows:

a. First Step
i. Carefully select a small virtuous team. I will be acting as system architect; the others two or three as design consultants. A few short term consultants may also be selected, as needed, for key specialties.
ii. Formalize, update and enrich the EWPC research. Develop a final scope of activities for the simulation and the pilot. Publish a draft of the EWPC Textbook.
iii. Develop the systems dynamics simulations to verify the trim-tab benefits of EWPC.
iv. With the trim-tab results, market the opportunity in the Dominican Republic, in order to finance and implement one EWPC pilot. This could be the most difficult challenge.

b. Second Step
i. Execute the pilot to further verify EWPC benefits.
ii. Publish the first edition of the EWPC Textbook.
iii. Promote the Operation Stage.

Explain your initiative in more depth and its stage of development.

Comprehensive. The key issue is the PCBM, which is replaced by BMIs. PCBM fractured the industry at the meter [I3, I6], generating a large market of individual solutions. The Galvin Electricity Initiative confirms such market.

Anticipatory. New scenario underlying assumptions: high energy costs, low retail transaction costs, no customer classes, active demand, and active distribution.

Ecologically responsible. EWPC decouples sales from profits, providing incentives for energy efficiency investments. To fight climate change, EWPC enables pricing fossil fuels externalities.

Feasible. The RPTSS is essentially the same vertically integrated utility that restricts its services to transportation. Prudential regulations need to be developed for the OMBS.

Verifiable. The plan has verifications in stages 1 and 2.

Replicable. As RPTSS are made from modular transportation control areas, it scales and adapts through power system interconnections. The BMIs of the OMBS enable increasing returns.

How does your strategy and approach respond creatively and comprehensively to key issues?

B.S.‘68, M.S.‘71, and Ph.D.’72, all from Cornell University, Ithaca, N.Y.

1990 to date: In charge of business/contractual trade and regulation in electricity at my employer Metaldom.

2006: Selected by the Mexican consultant in charge of the National Systemic Competitiveness Plan to propose a solution to the electricity crisis of the Dominican Republic, which was executed in time.

1999-2001: Member of the Board of the Coordinating Body of the restructured electric market. Representing the Independent Power Producers, I led the successful recruitment of its first General Manager (recruitment experience).

1996: Recommended a solution to the electricity crisis under contract: Integral Policy of Electricity for the Dominican Republic (origin of the EWPC transformation).

1985-87: Worked as a computer consultant in a reengineering like project for the Ministry of Finance (source of computer system development experience).

1965-85: Held positions of increasing responsibilities at the Dominican Corporation of Electricity: a scholarship, SCADA Engineer, Gas Turbine Electronic Engineer, Chief Dispatcher, Design Division Head, Energy Control Center Project Manager, and Internal Consultant. 1988-89: As Planning Director, I led a hands-on power generation expansion plan (a cap-stone for my industry understanding).