Demand Response Programs
Demand response programs provide end users a way to monitor and adjust their power consumption to better match the demand for power. That means during peak usage days – usually the hottest days of the year –
… Read MoreDemand response lowers system capacity, allowing load-serving entities like utilities and retail suppliers to purchase and build less new capacity. Savings are generally passed to retail energy users. ISOs offer compensation to users that remain on standby or that shut down when an “event” is called. An event is generally a surge in usage due to weather.
DR programs vary from state to state. Most retail energy suppliers can offer this type of program as part of a bundled energy supply contract. The company facilitating the demand response program will usually split the proceeds for an agreed upon percentage with the customer.
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