Demand Response

Facilities with the capability to curtail or interrupt their energy consumption when the “grid,” or power delivery infrastructure, is nearing capacity are good candidates for demand response programs. Under these programs, the program sponsor (usually an independent system operator or “ISO”) pays the customer for making its load subject to interruption. Depending on which program you enroll in, potential benefits may include:

  • Compensation for being on stand-by as a demand response participant.
  • Compensation when an event (power interruption) is called.
  • Flexibility to choose between manual and automated compliance when an event is called.
  • The opportunity to specify dates on which you will not be able to curtail your load.
  • The opportunity to demonstrate your organization’s leadership in conservation.
Demand response programs vary widely by state, but there are limits on how often and for how long you can be called upon to interrupt your power consumption. You’ll also be given enough notice before an event is called to make arrangements so your business activities won’t be disrupted.


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