: This article is the research of the application of DSM on Nanchang city . In this research

each participator in the DSM plan

especially the utility

has the positive net benefit .The reason of thisresult is that

in our research

we do not think the revenue loss of the utility for reduced electricity salesequals to the save of the user’s electricity for

but equals to the profit of those lost electricity. on theother hand

We take the saving of cost of peak regulation of the avoid peak load into account of the bene -fit of utility. AN these consideration make the net benefit of the utility positive . So this result correct thesituation that the net benefit of utility is negative in Shanghai case study.