Commercial availability of these units is scheduled for 2002 and will initially target financially attractive areas where there is a significant spread between electric and natural gas rates. Thus, it is less expensive to generate electricity from natural gas than it is to purchase it directly from the electric utility. Customers in these areas will achieve significant energy cost savings to recover their initial investment in the personal power system within a reasonable amount of time. As economies of scale prevail, personal power systems will become economically viable in an increasing number of geographic locations. In addition, Energy Partners will expand its stationary focus to include residential units fueled by propane and larger natural gas systems intended for multi-family homes and small commercial use.
Many parties stand to benefit from the commercialization of personal power systems.
Utility companies, as Energy Partners' distributors, will realize a new market opportunity that involves relatively low risk and low capital costs, while it improves customer service and decreases pollution. Increased electricity demand will be met without the high costs of installing new infrastructure or repairing old infrastructure.