Flex Alert Overview

Flex Alert Tools

Flex Alert Topics

FREE Energy-Saving Tips Cards

Picture of energy tip card

Order our FREE tri-fold energy-saving tips cards and reduce electricity costs as well as protect the environment.

FAQ - Demand Response Programs

Who can participate in demand response programs?

Everyone: every resident, organization, government facility and business from the largest firm to the smallest "mom and pop" shop. For some inspiring success stories, read about the 2006 Demand Response Flex Your Power Award Honorees.

What are the program options?

Local utilities and the State offer a wide variety of demand response programs designed to meet every customer's needs including flexibility, financial considerations, and production needs. Programs vary by:

  • Eligibility. Typically based on a customer's peak electricity demand, measured in kilowatts (kWs).
  • Program triggers. These include extreme hot or cold weather, high spot-market price of electricity, system problems such as power plant outages or electrical emergencies.
  • Incentives. Some programs provide lower off-peak rates or capacity payments for customers that reduce loads or shift loads to off-peak hours. Other programs provide energy control technologies.
  • Voluntary or binding. Binding programs provide incentives for customers that reduce an agreed upon amount of electricity when asked and penalties for those that don't. Voluntary programs, including the Flex Your Power NOW! program, do not penalize participants for not reducing electricity use.

Who offers demand response programs?

Browse a list of Demand Response Programs or download a spreadsheet (XLS) of the known programs.

What are the advantages of participating?

  • Financial: Reducing your energy use cuts your energy costs. Also, several demand response programs offer financial and other benefits to businesses that can reduce electric load during periods of extreme usage.

    Participants in the binding Base Interruptible Program, for instance, receive a monthly bill credit of $7 per kW for agreeing to reduce demand by a pre-determined amount - 15% or 100 kW, whichever is higher — during emergency situations.
  • Reliability. Reducing peak energy use helps eliminate your exposure to rotating outages. Your neighborhood will benefit too — lights will stay on, businesses will keep running and people that rely on electrical equipment,often schools and the elderly, will not suffer from power disruptions.
  • Environmental: Cutting electricity is the most environmentally sound way of securing power — reducing use minimizes the need for generation and therefore, the amount of emissions released into the air from the production of electricity.

If I participate, will my business be shut down without my knowledge?

All demand response programs provide advance notification to you about when a program will be triggered. This extra response time allows participants to prepare building occupants, work processes and daily schedules. Your utility representative can help you choose among the many programs available, matching your building's profile to the best-suited program packages to ensure you receive the greatest benefits with the least amount of risk.

What happens if I don't reduce peak demand when called upon?

Voluntary programs do not penalize participants for failing to cut electricity use when asked. Participants in binding programs, however, are financially penalized for not meeting a previously agreed upon reduction goal.

More importantly, by not taking action to prevent an electrical emergency, you can be putting your home, business or neighborhood at risk of rolling blackouts.

Does peak conservation really work?

Yes. Every action you take on critical days with high electricity use helps prevent electrical emergencies. These actions include things as simple as:

  • Setting thermostats to 78 degrees.
  • Shutting off unnecessary lighting.
  • Shifting use of appliances and processing equipment to off-peak hours (before noon or after 7 pm).

Where can I find more information about Demand Response?