What is Demand Response?
- Demand Response is a change in electric usage by consumers in response of incentive payments
- The nation’s electric transmission grid operators will pay you quarterly premiums for your commitment that you will be able to temporarily reduce the amount of energy that you consume if the grid ever needs your help
How Does Demand Response Work?
Consumers who can temporarily reduce electric usage off the grid:
- Usage Reduction by turning off capital equipment, large HP motors and raising AC temperature set points and reducing a % of lighting.
- Generators can be used but need to be in Compliance with EPA Standards (revised in 2016)
- Program Period: June 1 through May 31
- June — October, May: 10:00 a.m. thru 10:00 p.m.
- November — April: 6:00 a.m. thru 9:00 p.m.
- EVENTS = any day (NO HOLIDAYS) Unlimited
- Interruption Duration: 10 hours (History = 4 hour duration)
- Response to an “EVENT”: Voluntary, however, no compliant volumes will equal payment reduction
- 30 minute to 2 hours Event notice given to participants
- Non-compliance during an “event” = reduction in payments (but never out of pocket)
- 1 hour mandatory test each year, if no events are called
- Day and time of test announced in advance
Program Sponsor — PJM Interconnection (transmission grid operator):
An independent entity, regulated by the Federal Energy Regulatory Commission.
- PJM: Ensures the reliability of the electric power grid across parts of Ohio and 12 other states.
- Pays you from money collected by your local electric utility company (when you pay your electric bill)
- Payments per 100 KW of electric reduction
Why is demand response important?
- PJM’s demand response program enables businesses to receive a revenue stream for reducing electricity consumption when the reliability of the electric grid is in jeopardy.
- More than 8,000 commercial and industrial facilities participate in a an area of 13 states
Why should I participate?
- Generates a revenue stream which can be easily managed in daily operations.
- You control the shutdown/transfer to on-site generation versus a brownout!
- Helps the community and your neighbors
- Enhances sustainability
- Money can be used to offset generator maintenance costs or to lower utility budget
- Avoids the need to build expensive peaking power plants