Demand Response
What Is Demand Response?
Supply and Demand on an electricity grid needs to be in balance at all times. Each grid is constantly monitored and electricity demand forecasts ensure adequate power supplies are available at any given time. When the forecast exceeds the actual amount of available power or the cost to obtain additional power is too great, a Demand Response program is enacted to alleviate stress on the grid.
Demand Response participation may be required in the following scenarios:
Emergencies
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When extreme hot or cold temperatures occur, normal demand can spike to a much higher level than normal. In order to avoid power outages utilities will make the necessary arrangements with their Demand Response partners to restore natural order to the grid, thus reducing the likelihood of a power outage.
Economical
- The cost of supply for electricity directly correlates with demand. Therefore when the price of electricity is high, so is the cost obtain it. During times of high demand, generation is exhausted and Demand Response participants may be called upon to curtail a portion of the electricity load. This prevents a spike generation prices and keeps the TDSP delivery costs down.
Price incentives, payments, or rebates are available to customers who choose to participate in Demand Response programs - whether or not participation is needed. Although participants are rarely called upon, without the program, electricity would be more expensive and less reliable. For eligibility information, please contact one of our Choice! consultants.
