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Demand Response
What is Demand Response?
Demand Response is the volunary reduction of electrical consumption at the customer level. In response to growing electricity demand, high wholesale electricity prices, capacity needs, or system failures, reduction responses are achieved by customers offering to use less power. By turning off lights, raising or lowering temperatures, or turning on backup generators, customers can receive payments for participating in demand response programs. This cooperation results in grid reliability and helps secure supply and demand issues as well as keeping energy prices lower.
Demand response saves dollars by:
- Reducing and eliminating pollution
- Reducing system congestion on the grid
- Improving reliability and minimizing chance of blackouts
- Providing a cleaner and healthier environment
Why is demand response better suited than traditional spinning reserves?
- Spinning reserves are inefficient because they must be idle and ready for any increased demand in energy
- More available resources from customers lead to lower electric rates
- Demand response produces a revenue stream to businesses (guaranteed monthly payments in many cases) which provides economic development benefits
- Demand response provides a quicker response than a large generator
- Point of source generation eliminates the inefficient use of transmission lines
- Demand response produces substantially lower emissions, if any
- Demand response enjoys strong state and federal support
Cost Containment’s Demand Response Programs are proven to effectively reduce the cost of electricity and increase revenue flow for your business, while optimizing your company’s assets.
Do I Qualify? Fill out this form to receive more information about qualification in Demand Response.
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Please visit FERC for a list of specific glossary terms relating to Demand Response. |
The map above identifies the years when a region/sub region drops below target capacity margin levels required to meet summer peak (unless noted as winter) including both committed and uncommitted resources. Those regions/sub regions not identified are not projected in the next ten years to drop below their target margin levels.
Note: The highlighted area between SPP and SERC denotes overlapping regional boundaries.
Committed & Uncommitted Capacity Resources
Committed Capacity Resources
Generating capacity resources that exist, are under construction, or planned that are considered available, deliverable, and committed to serve demand, plus the net of capacity purchases and sales.
Uncommitted Capacity Resources
Capacity resources that include one or more of the following:
-Generating resources that have not been contracted nor have legal or regulatory obligation to deliver at time of peak.
-Generating resources that do not have or do not plan to have firm transmission service reserved (or its equivalent) or capacity injection rights to deliver the expected output to load within the region.
-Generating resources that have not had a transmission study conducted to determine the level of deliverability.
-Generating resources that are designated as energy-only resources or have elected to be classified as energy-only resources.
-Transmission-constrained generating resources that have known physical deliverability limitations to load within the region.
The Energy Policy Act of 2005
Federal Encouragement of Demand Response
"It is the policy of the United State that demand response...shall be encourage, the deployment of such technology and devices that enable electricity customers to participate in such...demand response systems shall be facilitated, and unnecessary barriers to demand response participation in energy, capacity and ancillary service markets shall be eliminated. It is further the policy of the United States that the benefits of such demand response that accrue to those not deploying such technology and devices...shall be recognized."
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