Lowering Your Utility Bills Part 3: Demand Response

The Practical Matter of Controlling the Operating Costs of Your Utility Bills Part 3: Demand Response

This post is for large end-users of power, generally speaking if the electricity bill of your business approaches $50,000 a month, Demand Response (DR) opportunities may be worth considering.

Demand Response (DR) is a commitment between a business with significant power consumption and the regional grid operator. The end-user commits to curtailing energy consumption, or load, at times of peak grid stress.  The regional grid operator offers monthly consideration for this commitment by the business.  The monthly checks from the regional grid operator to the business can be substantial.

DR programs have been implemented locally in an effort to tackle the issue of increased consumer demand for electricity and the difficulties of building new power plants able to meet that demand. Particularly at times of peak demand for power, the stress on a regional power grid can be tremendous. DR programs are an effective way of lowering regional grid stress during that peak demand. In New England, peak demand times usually occur during summer heats waves in the late afternoon during the work-week, when building envelopes are struggling to contain comfortable interior temperatures and air conditioning units are working at full capacity.

Businesses that need significant power to operate and have already invested in back-up generation in case of power outages are ideal candidates for exploring DR opportunities.  Contact inCharge Energy at (800-268-8576) if you believe your business may be appropriate for a DR program.