This page features profiles of the demand response (DR) and time-variable pricing (TVP) offerings from utilities in northeastern states, as well as from independent system operators (ISOs) and regional transmission organizations (RTOs) such ISO-New England and PJM Interconnection. TVP options are offered by most utilities and can range from simple time-of-use (TOU) rates, in which prices vary at pre-set levels through the day (usually with peak, off-peak, and two "shoulder" periods), to truly "dynamic" rates such as real-time and day-ahead hourly pricing.

The Independent System Operator New England Inc. (ISO-NE) offers its Demand Resources programs, which provide payments to electricity users for load reductions (of as little as 100 kW), either by reducing usage or operating on-site generation during periods of high demand or prices. Customers may participate in the programs through any participating member ("market participant") of the New England Power Pool, such as a utility company, power marketer, competitive energy supplier, or independent curtailment service provider (CSP). A market participant is allowed to aggregate load to reach the quantity qualification limit, so interested customers with less than 100 kW to offer may want to contact their utility or other eligible party.

ISO-NE's Forward Capacity Market (FCM) allows customers to bid their load reduction capabilities—whether constant (such as an indoor lighting retrofit project), seasonal (such as a new energy-efficient chiller plant), or dispatchable (such as demand management or an on-site generator with controllable output)—into a capacity auction that allows demand-side resources to compete with supply-side ones. Bids that are accepted are paid the auction clearing price. These auctions take place annually for commitment periods three years in the future (though the qualification process begins roughly a year before the auction). Interested facilities should contact a market participant regarding the auction schedule; in addition, market participants may have unfilled capacity commitments ahead of the next auction.

Additionally "active demand resources" (such as demand management or an on-site generator with controllable output) can participate in the Real-Time and Day-Ahead Energy Markets, which provide customers an opportunity to receive payments for responding to system prices or providing operating reserves that help maintain electric system reliability.

Commercial customers of Eversource in Connecticut can participate in the utility’s ConnectedSolutions program, either through a curtailment service provider (CSP) or independently. Customers are remunerated for curtailing load during the summer months (June 1 to September 30) at $35/kW and winter months (December 1 to March 31) at $25/kW. Curtailment events occur on non-holiday weekdays from 2 to 7 p.m. The maximum number of summer events (two to three hours each) is eight, while the limit for winter is five events (which last three hours); notice time is at least 24 hours. Customers with battery storage can earn between $50 and $200 per kW for participating, depending on the season and the level of commitment they can make. Additional information regarding this program can be found in the program materials

Eversource offers its Variable Peak Pricing (VPP) rate, a time-of-use rate in which the price of off-peak power adjusts monthly and on-peak (weekdays, 12  to 8 P.M.) rates vary by day (with notice provided the day prior). This allows customers to shift their electricity consumption from on-peak to off-peak hours and reduce energy costs. Customers interested in receiving service under this rider must contact the company to request service.

Eversource offers a voluntary Electric Vehicle Rate Program to any customers with a level 2 or level 3 charging station whose load is separately metered and available for use by the public. Rates for electric service provided under this rider will be determined in accordance with the Company's general service rate schedule. For more information visit the FAQs page.

United Illuminating maintains several time-of-use rates.

United Illuminating offers General Service and General Service Time-of-Day Electric Vehicle (EV) Charging Station Rates. The rates address EV charging stations available for public and non-public use with direct current fast chargers (DCFCs). Also covered are  installations of four or more networked Level 2 chargers that are enrolled in a managed charging program under the Workplace & Light-Duty Fleet Charging Program.

Groton Utilities offers a voluntary demand response program to its commercial customers.

The PJM Interconnection (PJM), a regional transmission organization (RTO), offers several demand response programs. Two specific programs may be attractive to federal facilities in the PJM footprint:

  • PJM's Capacity Performance program allows demand resources to participate in PJM's Reliability Pricing Model forward capacity market via an aggregator (any existing PJM member, such as their utility, a third-party electricity supplier, or a specialty curtailment service provider, CSP). Participants pledge to either reduce their load by a specified amount (guaranteed load drop, GLD), or to a specific kW level (known as firm service level, FSL), within one or two hours of an event notification. Load reductions are mandatory and may occur up to ten times per year, lasting up to six hours per event. While events can be called any day of the year, some CSPs offer a summer-only option (pairing those resources with winter-only ones at their disposal). Penalties for non-compliance are substantial. Remuneration is based on the results of the annual RPM capacity auctions in various PJM regions. Remuneration levels for the 2023–24 PJM year (which runs from June 1, 2023, to May 31, 2024) are in the $20,000 per MW range for Delaware customers. Participants are also eligible to receive energy payments for actual reductions, if and when the program is called.
  • ​​​The Economic Load Response program allows electricity users to provide load reductions in exchange for a payment based on hourly wholesale electricity prices. Participation is fully voluntary. Customers start by submitting load reduction bids (through their CSP) of at least 100 kW into the day-ahead energy market. Participants whose bids are accepted are paid for their load reductions based upon the day-ahead, hourly electricity market prices (the day-ahead "locational marginal price," or LMP). Reductions are figured based on a customer baseline load (CBL), which is essentially the average loads for the same hours in four of the facility's previous non-responding days. Regardless of which type of firm it is, the CSP will generally offer to split the revenues with the customer at a pre-determined percentage.

In both programs, participants can provide load reductions either through curtailing electricity use or operating on-site generation consistent with local environmental regulations and permits.

PJM also allows energy efficiency projects to participate in its forward capacity markets, based on the Reliability Pricing Model. To be eligible, EE projects must reduce load continuously by at least 100 kW during peak summer hours. This load reduction can be bid into PJM's annual (for three years in advance) and "residual" (nearer-term) capacity auctions, and if selected will receive the auction clearing price. Interested customers can participate through contractors, such as energy service companies (conducting ESPCs) or utilities (executing UESCs), at their sites.

Delmarva Power's Peak Energy Savings Credit program is a variant of "critical peak pricing." It allows small commercial customers to respond to alerts (via phone, text, or e-mail) the day before an event indicating that the following day will be a program day and identifying the peak hours (generally between 12 and 8 P.M. on weekdays, June to September). Customers can then react (there's no penalty for not responding) by cutting their loads during the events. Remuneration is set by actual performance relative to the average of a customer's three highest peaks in the prior 30 days. Customers will receive a credit of $1.25 for every kWh they reduce their energy usage below their baseline on Peak Savings Days.

Delmarva's Hourly Priced Service (Rider HPS), a real-time pricing rate, is the default for large (> 1,000 kW peak) customers that do not contract for third-party electric supply.

Delmarva also offers the Peak Management Rider (Rider PM), in which customers commit to a load capacity reduction capability of 100 kW or more and agree to reduce a specified load at the request of the utility. "Peak management periods" generally occur on hot weekdays during the summer (June 1 to September 30) between 9 a.m. and 10 p.m., but can be called during other times throughout the year as required by the utility (e.g., in the event of a large plant outage). A customer will not be penalized for non-compliance with events during the off-peak or non-summer periods.

The Independent System Operator New England Inc. (ISO-NE) offers its demand resources programs, which provide payments to electricity users for load reductions (of as little as 100 kW), either by reducing usage or operating on-site generation during periods of high demand or prices. Customers may participate in the programs through any participating member ("market participant") of the New England Power Pool, such as a utility company, power marketer, competitive energy supplier, or independent curtailment service provider (CSP). A market participant is allowed to aggregate load to reach the quantity qualification limit, so interested customers with less than 100 kW to offer may want to contact their utility or other eligible party.

ISO-NE's Forward Capacity Market (FCM) allows customers to bid their load reduction capabilities—whether constant (such as an indoor lighting retrofit project), seasonal (such as a new energy-efficient chiller plant), or dispatchable (such as demand management or an on-site generator with controllable output)—into a capacity auction that allows demand-side resources to compete with supply-side ones. Bids that are accepted are paid the auction clearing price. These auctions take place annually for commitment periods three years in the future (though the qualification process begins roughly a year before the auction). Interested facilities should contact a market participant regarding the auction schedule; in addition, market participants may have unfilled capacity commitments ahead of the next auction.

Additionally, "active demand resources" (such as demand management or an on-site generator with controllable output) can participate in the Day-Ahead and Real-Time Energy Markets, which provide customers an opportunity to receive payments for responding to system prices or providing operating reserves that help maintain electric system reliability.

Central Maine Power (CMP) offers several time-of-use rates for various customer classes, but they currently (Spring 2022) do not offer much price differentiation across the day, nor from summer to winter.

Versant Power (formerly known as Emera Maine) also offers time-of-use rates for large commercial customers, however, similar to CMP, there is little difference in prices throughout the day, nor from summer to winter.

Versant power will be releasing additional rates for electric vehicles and battery storage in April 2023. 

The PJM Interconnection, a regional transmission organization (RTO), offers several Demand response programs. Two specific programs may be attractive to federal facilities in the PJM footprint:

  • PJM's Capacity Performance program allows demand resources to participate in PJM's Reliability Pricing Model forward capacity market via an aggregator (any existing PJM member, such as their utility, a third-party electricity supplier, or a specialty curtailment service provider, CSP). Participants pledge to either reduce their load by a specified amount (guaranteed load drop, GLD), or to a specific kW level (known as firm service level, FSL), within one or two hours of an event notification. Load reductions are mandatory and may occur up to ten times per year, lasting up to six hours per event. While events can be called any day of the year, some CSPs offer a summer-only option (pairing those resources with winter-only ones at their disposal). Penalties for non-compliance are substantial. Remuneration is based on the results of the annual RPM capacity auctions in various PJM regions. Remuneration levels for the 2023-24 PJM year (which runs from June 1, 2023, to May 31, 2024) are in the $15,000 – $20,000 per MW range for most Maryland customers. Participants are also eligible to receive energy payments for actual reductions, if and when the program is called.
  • The Economic Load Response program allows electricity users to provide load reductions in exchange for a payment based on hourly wholesale electricity prices. Participation is fully voluntary. Customers start by submitting load reduction bids (through their CSP) of at least 100 kW into the day-ahead energy market. Participants whose bids are accepted are paid for their load reductions based upon the day-ahead, hourly electricity market prices (the day-ahead "locational marginal price," or LMP). Reductions are figured based on a customer baseline load (CBL), which is essentially the average loads for the same hours in four of the facility's previous non-responding days. Regardless of which type of firm it is, the CSP will generally offer to split the revenues with the customer at a pre-determined percentage.

In both programs, participants can provide load reductions either through curtailing electricity use or by operating on-site generation consistent with local environmental regulations and permits.

PJM also allows energy efficiency projects to participate in its forward capacity markets, based on the Reliability Pricing Model. To be eligible, EE projects must reduce load continuously by at least 100 kW during peak summer hours. This load reduction can be bid into PJM's annual (for three years in advance) and "residual" (nearer-term) capacity auctions, and if selected will receive the auction clearing price. Interested customers can participate through contractors such as energy service companies (conducting ESPCs) or utilities (executing UESCs) at their sites.

Baltimore Gas and Electric Company's (BGE's) Schedule GL is the default rate for customers between 60 and 600 kW and is a fixed time-of-use rate in which there are peak, intermediate (shoulder), and off-peak periods, with significant price differences between periods, especially in the summer (June through September). The summer peak runs from 10 a.m. to 8 p.m. on (non-holiday) weekdays, while there are two daily peaks on non-summer weekdays, 7 to 11 a.m. and 5 to 9 p.m.

BGE also offers the Electric Vehicle Charging Distribution Demand Credit rider for commercial customers served under Schedules GL or P. This rider allows customers that have installed an eligible EV charging station within BGE's distribution territory to receive a credit to partially offset their monthly distribution demand charge. The credit is currently (eff. 6/30/21) not available to new customers

PEPCO offers a variety of programs and rates for customers to save money on demand flexibility:

  • PEPCO’s Energy Wise Rewards™ offering is a "direct load control" program that allows the company to cycle the customers' central air conditioners or heat pumps for up to 15 minutes in any 30-minute period during summer weekdays (June through September) on usually about five "peak saving days" per summer. Cycling events usually last three to six hours. The company controls the air conditioners either through a programmable thermostat or an outdoor switch box that they install on customers' AC units. Devices and installation services come at no charge. Customers receive bill credits for participating.
     
  • PEPCO also offers a series of default time-of-use ("time-metered") rates for its commercial customers who do not choose third-party electricity supply, with charges differing according to time-of-day and season.
     
  • PEPCO's Non-Residential Direct Load Control Rider allows participating customers to let the utility install, own, and maintain either a smart thermostat or a remotely controlled switch that will cycle on and off the customer’s central air conditioner or heat pump. Direct load control events can occur from June through October. Customers receive a one-time enrollment installment credit of $80 and an annual credit of $80. Another option for customers is the Master-Metered ("MM") Direct Load Control Rider, where a master-metered customer allows PEPCO to install DLC devices or smart thermostats on the participant’s central air conditioners or heat pumps. Customers can choose from 50%, 75%, or 100% cycling options. Customers receive a one-time installation credit ranging from $15–$30 and an annual bill credit of $15–$30 dependent on the chosen cycling option.
     
  • The Electric Vehicle Charging Distribution Demand Charge Credit Rider provides customers that have installed an EV charging station with a credit to partially offset their monthly distribution demand charge. The demand charge credit will be calculated as 50% of the maximum nameplate capacity for new or added Level 2 EV chargers and/or DC Fast EV chargers.

Delmarva Power offers a variety of programs and rates for customers to save money on load management:

  • The Energy Wise Rewards™ offering is a "direct load control" program that allows the company to cycle the compressors in customers' air conditioners for up to 15 minutes in any 30-minute period during summer weekdays on usually about five "peak saving days" per summer (June through September). Cycling events usually last three to six hours. The company controls the air conditioners either through a programmable thermostat or an outdoor switch box that they install at your facility. Devices and installation services come at no charge. Customers receive bill credits for participating.
     
  • The Peak Management ("PM") Rider is an interruptible/curtailable rate option that provides participants with a per-kW bill credit based on their ability to reach a pre-designated firm service level (an absolute kW draw) or a guaranteed load drop from their expected power draw on similar summer weekdays. Remuneration amounts are based on prevailing PJM wholesale prices and depend on the maximum number of days (20 or 40) on which the customer is willing to curtail each summer (June through September) and the maximum number of hours (four or eight) for each curtailment. Penalties for non-compliance apply.
     
  • The Hourly-Priced Service is a real-time pricing program whereby customers pay Delmarva PJM's locational marginal price plus fixed adders for distribution, administration, etc. This rate is mandatory for customers over 600 kW who do not contract with a third-party electricity supplier.
     
  • Delmarva's Non-Residential Direct Load Control Rider allows participating customers to let the utility install, own, and maintain either a smart thermostat or a remotely controlled switch(es) that will cycle on and off the customer's central air conditioner or heat pump. Direct load control events can occur from June through October. Customers receive a one-time enrollment installment credit of $80 and an annual credit of $80.

A&N Electric Cooperative and Choptank Electric Cooperative, Inc. both offer time-of-use and curtailable rate riders for customers to enroll in and save money by reducing their peak energy demand.

The Independent System Operator New England Inc. (ISO-NE) offers its Demand Resources programs, which provide payments to electricity users for load reductions (of as little as 100 kW), either by reducing usage or operating on-site generation during periods of high demand or prices. Customers may participate in the programs through any participating member ("market participant") of the New England Power Pool, such as a utility company, power marketer, competitive energy supplier, or independent curtailment service provider (CSP). A market participant is allowed to aggregate load to reach the quantity qualification limit, so interested customers with less than 100 kW to offer may want to contact their utility or other eligible party.

ISO-NE’s Forward Capacity Market (FCM) allows customers to bid their load reduction capabilities—whether constant (such as an indoor lighting retrofit project), seasonal (such as a new energy-efficient chiller plant), or dispatchable (such as demand management or an on-site generator with controllable output)—into a capacity auction that allows demand-side resources to compete with supply-side ones. Bids that are accepted are paid the auction clearing price. These auctions take place annually for commitment periods three years in the future (though the qualification process begins roughly a year before the auction). Interested facilities should contact a market participant regarding the auction schedule; in addition, market participants may have unfilled capacity commitments ahead of the next auction.

Additionally, "active demand resources" (such as demand management or an on-site generator with controllable output) can participate in the Real-Time and Day-Ahead Energy Markets, which provide customers an opportunity to receive payments for responding to system prices or providing operating reserves that help maintain electric system reliability.

Massachusetts commercial customers of Eversource and National Grid can participate in the utilities' ConnectedSolutions programs, either through a curtailment service provider (CSP) or independently. Customers enrolled in the Summer Targeted Dispatch program (June through September) get remunerated for curtailing load at $35/kW, or $25/kW for those customers enrolled in the Winter Targeted Dispatch program (December through March, Eversource customers only). Load reduction events occur weekdays from 2 to 7 p.m. Customers enrolled in the Daily Dispatch program get remunerated at $200/kW in the summer. There are typically 30 to 60 events called per summer with each event lasting between 2–3 hours. Notifications for load reduction events are sent at least 24 hours prior. Customers with battery storage can earn between $50 and $200 per kW for participating, depending on the season and the level of commitment they make. Additional information regarding this program can be found in the program materials.

National Grid and Eversource also offer a variety of time-of-use rates to customers.

Unitil offers its ConnectedSolutions program to customers that are able to reduce their peak demand during the summer (June through September). Customers are remunerated at a minimum of $18/kW. There are typically eight load reduction events per season, lasting no more than three hours. Unitil also offers a time-of-use rate to its medium-sized commercial customers.

The Independent System Operator New England Inc. (ISO-NE) offers its Demand Resources programs, which provide payments to electricity users for load reductions (of as little as 100 kW), either by reducing usage or operating on-site generation during periods of high demand or prices. Customers may participate in the programs through any participating member ("market participant") of the New England Power Pool, such as a utility company, power marketer, competitive energy supplier, or independent curtailment service provider (CSP). A market participant is allowed to aggregate load to reach the quantity qualification limit, so interested customers with less than 100 kW to offer may want to contact their utility or other eligible party.

ISO-NE’s Forward Capacity Market (FCM) allows customers to bid their load reduction capabilities—whether constant (such as an indoor lighting retrofit project), seasonal (such as a new energy-efficient chiller plant), or dispatchable (such as demand management or an on-site generator with controllable output)—into a capacity auction that allows demand-side resources to compete with supply-side ones. Bids that are accepted are paid the auction clearing price. These auctions take place annually for commitment periods three years in the future (though the qualification process begins roughly a year before the auction). Interested facilities should contact a market participant regarding the auction schedule; in addition, market participants may have unfilled capacity commitments ahead of the next auction.

Additionally, "active demand resources" (such as demand management or an on-site generator with controllable output) can participate in the Real-Time and Day-Ahead Energy Markets, which provide customers an opportunity to receive payments for responding to system prices or providing operating reserves that help maintain electric system reliability.

Unitil offers its ConnectedSolutions program to customers who are able to reduce their peak demand during the summer (June through September). Customers enrolled are remunerated at a minimum of $35/kW in the summer. There are one to eight load reduction events per season, lasting no more than three hours.

Unitil offers a General Service EV Time-of-Use Rate and Large General Service Time-of-Use Rate to its commercial customers. The rates are seasonal with a winter (November through April) and summer (May through October) season. Off-peak hours are from 8 p.m. to 6 a.m. and all holidays and weekends; mid-peak hours are from 6 a.m. to 3 p.m. Monday through Friday (except holidays) and on-peak hours (when rates are highest) take place from 3 to 8 p.m. Monday through Friday (except holidays).

Liberty Utilities (Granite State Electric) offers its commercial customers their General Service Time-of-Use Rate, with off-peak energy (kWh) charges somewhat lower than the on-peak rate. 

Liberty customers can also enroll in the Rate EV Plug in Electric Vehicle option, which offers price differentiation between on- and off-peak hours for charging plug-in electric vehicles (EVs). The rates are seasonal with a winter (November through April) and summer (May through October) season. Off-peak hours are from 8 p.m. to 8 a.m.; mid-peak hours are from 8 a.m. to 3 p.m. Monday through Friday (except holidays) and 8 a.m. to 8 p.m. Saturdays, Sundays, and holidays; and "critical peak" hours (when rates are highest) take place from are 3 to 8 p.m. Monday through Friday (except holidays).

The PJM Interconnection (PJM), a regional transmission organization (RTO), offers several demand response programs. Two specific programs may be attractive to federal facilities in the PJM footprint:

  • PJM's Capacity Performance program allows demand resources to participate in PJM's Reliability Pricing Model forward capacity market via an aggregator (any existing PJM member, such as their utility, a third-party electricity supplier, or a specialty curtailment service provider, CSP). Participants pledge to either reduce their load by a specified amount (guaranteed load drop, GLD), or to a specific kW level (known as firm service level, FSL), within one or two hours of an event notification. Load reductions are mandatory and may occur up to ten times per year, lasting up to six hours per event. While events can be called any day of the year, some CSPs offer a summer-only option (pairing those resources with winter-only ones at their disposal). Penalties for non-compliance are substantial. Remuneration is based on the results of the annual RPM capacity auctions in various PJM regions. Remuneration levels for the 2023–24 PJM year (which runs from June 1, 2023, to May 31, 2024) are in the $15,000 – $20,000 per MW range for most New Jersey customers. Participants are also eligible to receive energy payments for actual reductions, if and when the program is called.
  • The Economic Load Response program allows electricity users to provide load reductions in exchange for a payment based on hourly wholesale electricity prices. Participation is fully voluntary. Customers start by submitting load reduction bids through their curtailment service provider (any existing PJM member, such as their utility, a third-party electricity supplier, or a specialty CSP) of at least 100 kW into the day-ahead energy market. Participants whose bids are accepted are paid for their load reductions based upon the day-ahead, hourly electricity market prices (the day-ahead "locational marginal price," or LMP). Reductions are figured based on a customer baseline load (CBL), which is essentially the average load levels for the same hours in four of the facility's previous non-responding days. Regardless of which type of firm it is, the CSP will generally offer to split the revenues with the customer at a pre-determined percentage.

In both programs, participants can provide load reductions either through curtailing electricity use or operating on-site generation consistent with local environmental regulations and permits.

PJM also allows energy efficiency projects to participate in its forward capacity markets, based on the Reliability Pricing Model. To be eligible, EE projects must reduce load continuously by at least 100 kW during peak summer hours. This load reduction can be bid into PJM's annual (for three years in advance) and "residual" (nearer-term) capacity auctions, and if selected will receive the auction clearing price. Interested customers can participate through contractors such as energy service companies (conducting ESPCs) or utilities (executing UESCs) at their sites.

PSE&'s default rates for commercial and industrial customers are either time-of-use – for those on the General Lighting & Power (GLP) or Large Power & Lighting - Secondary (LPL-S) rates –  or "hourly" (i.e., real-time) for customers on their Large Power & Lighting - Primary (LPL-P) or high tension (HTS-S and HTS-HV) rates.

Orange and Rockland (O&R) offers several options for commercial customers to benefit from load management:

  • The utility has two demand response options for its C&I customers, the Commercial System Relief Program (CSRP) and the Distribution Load Relief Program (DLRP). The latter is a year-round program and requires reductions with just two hours' notice for events, whereas their CSRP offering provides 21 hours of notice. DLRP customers must be able to reduce demand between 6 a.m. and 12 a.m. (midnight) any day of the week, while CSRP customers can only be called on during weekdays. Customers must maintain a minimum four-hour load reduction per event. CSRP customers receive a monthly reservation payment of $3/kW and DLRP customers receive $3/kW in Tier 1 areas and $5/kW in Tier 2 areas. Customers in both programs receive a $0.50/kWh performance payment during curtailment events. Customers who are able to reduce their demand by 50 kW or more can apply directly with the utility.
     
  • Commercial customers are also eligible to enroll in the utility's time-of-use rates and save on their bills by reducing their usage during peak demand times, particularly the summer months (June to September), Monday to Friday (except holidays) between 12 and 7 p.m. Peak demand times in the winter months (October to May) are between 10 a.m. and 9 p.m., Monday to Friday (except holidays).
     
  • Customers can participate in the Bring Your Own Thermostat program by allowing O&R to make brief, limited adjustments to their central air-conditioning settings. Permissible "adjustment periods" occur from May to September during weekdays from 11:30 a.m. to 11 p.m. Adjustment periods last no more than four hours and occur no more than ten times per summer (unless there’s a power emergency). Customers can elect to re-take control of their thermostat and adjust the temperature at any time. Customers will receive an $85 rebate for each thermostat enrolled in this program and $25 at the end of the summer season for each year enrolled in the program.
     
  • Commercial customers can choose to have their electric supply priced on an hourly basis by enrolling in the Basic Generation Service-Commercial Industrial Energy Price (BGS-CIEP) plan. Energy charges will vary each hour of the day, and every day of the week based on market conditions.
     

The New York Independent System Operator (NYISO) offers both reliability- and economic-based demand response programs. Customers may enroll simultaneously in one reliability and one economic program, and may also participate in their utility's DR program(s).

  • The Installed Capacity (ICAP) Special Case Resource (SCR) program provides financial incentives for electricity consumers to reduce their electricity consumption or operate on-site generation to cut their draw from the electric grid during periods of reserve shortage or reliability need. The minimum offered load reduction to the wholesale market is 100 kW and can be achieved by aggregating multiple consumers within a load zone. Curtailment events can last up to four hours or more (however participants must respond for the lesser of the event duration or four hours). NYISO provides two-hour notice of events as well as day-ahead advisories. Participants receive two separate payment streams: a capacity payment based on their committed load reduction (specifically, 90% of its value in NYISO’s ICAP market) and energy payments for their actual cuts during events. Participants face non-compliance penalties if they do not curtail their committed amount when called by NYISO. Individual customers must participate through an authorized "responsible interface party" (RIP), which coordinates transactions with NYISO, and cannot commit the same resources in both the Emergency Demand Response Program (see below) and SCR.
     
  • The Emergency Demand Response Program (EDRP) provides financial incentives for electricity users to voluntarily reduce consumption or operate on-site generation to reduce their electricity draw from the grid during periods of electricity reserve shortage or reliability need. NYISO typically provides two-hour notice of curtailment events as well as day-ahead advisories (although in some cases immediate deployment is requested). Participants receive the higher of $500/MWh and the real-time zonal locational-based marginal price (LBMP) for their curtailments. Participation in any curtailment event is voluntary, and there are no penalties for non-performance. An individual customer can either participate directly in EDRP (if it can offer at least 100 kW of load cut) as its own curtailment service provider (CSP) or through an authorized third-party CSP, such as a utility, energy service company, or curtailment aggregator. Customers cannot participate in both the EDRP and the Installed Capacity Special Case Resources (SCR) program, as SCR and EDRP are sometimes dispatched simultaneously by NYISO.
     
  • The Day Ahead Demand Response Program (DADRP) provides electricity users with the opportunity to bid load reductions into New York’s day-ahead wholesale electricity market, where their bids compete with generators' offers to meet the state’s demand. At their discretion, customers can submit bids on a day-ahead basis by indicating the load reduction amount, price (between NYISO’s "monthly net benefits test offer floor" and $2,000 per MWh), and time period. If a bid is accepted and the customer fully curtails, they receive payment based on the greater of their bid price and the day-ahead locational-based marginal price (LBMP). If the customer fails to fully curtail, they will pay the higher of the day-ahead LBMP and the real-time price for the amount of incomplete scheduled load reduction. Individual customers can either participate directly in DADRP, if their load reduction is at least 1 MW, or through an authorized curtailment service provider (CSP), such as a utility, energy service company, or curtailment aggregator. The minimum offered load reduction by an aggregation of electricity consumers within a load zone must be at least 2 MW. DADRP participants can also be registered in either the EDRP or SCR program.
     
  • NYISO also offers the Demand-Side Ancillary Services Program (DSASP), through which loads can provide ancillary services -- specifically, 10- and 30-minute spinning and non-spinning operating reserves – as well as frequency regulation service. To participate, registered demand-side resources submit availability bids to the day-ahead and/or real-time market. If these bids are accepted, the demand-side customer is paid the market clearing price for that level of ancillary services. In return, the customer must comply with load reduction signals from NYISO. Any differences between the day-ahead and ancillary services amount is financially settled at the real-time ancillary services prices. A demand-side resource cannot participate simultaneously in the DADRP and DSASP.

In addition to the NYISO initiatives described above, New York State customers can also take advantage of several demand response programs offered by the state’s electric utilities.

Con Edison offers several DR opportunities under its Smart Usage Rewards umbrella:

  • Small commercial customers can participate in demand response via the company's Smart Thermostat program. Customers enrolled in this program allow the utility to make small adjustments to their smart thermostat settings when demand on the grid is high. The summer adjustment periods occur between 11 a.m. and 11 p.m. on weekdays and typically last no more than four hours. Customers will be awarded $85 per enrolled thermostat and can receive an additional $25 per thermostat incentive for participating in 50% of event hours starting in the customer’s third season of participation in the program. Customers participating in this program receive a $50 discount when purchasing an eligible ENERGY STAR-certified Nest, Honeywell Home, or Emerson Sensi smart thermostat.
     
  • The Distribution Load Relief Program (DLRP) pays participants between $18 and $25 per kW for each month of enrollment, as well as $1/kWh for actual event reductions, in exchange for their willingness to cut load by pledged amounts any time between 6 a.m. and 12 a.m. (midnight), seven days per week, including holidays. Typically, events are called with two hours' notice, though less warning can be provided in advance of an "immediate event," i.e., when there is an imminent threat to the grid.
     
  • Another alternative, the  Commercial System Relief Program (CSRP), provides 21-hour notice before "planned events," which exclusively take place—on weekdays when ConEd’s system reaches 92% of its peak. Participants receive between $6 (Staten Island and Westchester County) and $18 (Brooklyn, Bronx, Manhattan, and Queens) per pledged kW per month and $1 for each kWh that is reduced during an event. "Unplanned events" can be called with less than 21 hours' notice, but participation in those is voluntary.

Note that ConEd offers longer-term ("Term Dynamic") options for customers willing to make multiple (three to five) year commitments to offerings comparable to the DLRP and CSRP, as well as a 10-minute response option for the DLRP. These deals will entail somewhat greater compensation amounts.

In addition, ConEd offers a number of incentives for customers to purchase products and systems that facilitate load management, from absorption chillers to thermal storage systems.

ConEd offers various time-of-use rates and load management service riders:

  • Customers with load-shifting capability can take advantage of ConEd’s Day-Ahead Hourly Pricing (Rider M) rate, under which all power is charged at the day-ahead price. By gauging day-ahead pricing, customers can plan their load reduction strategies around high-price periods and, in turn, benefit from shifting load to lower-priced periods.
     
  • Small commercial customers can opt for ConEd's time-of-use rate, which charges dramatically more or less, respectively, for power during the day (8 a.m. to 10 p.m.) versus overnight. Peak rates during non-summer months (October through May) are 18.62¢/kWh versus 1.38¢/kWh during off-peak hours. The difference is doubled during summer months (June through September), when electricity during the day is charged at 37.82¢/kWh, while at night it goes for just 1.38¢/kWh.
     
  • Customers can enroll in the Direct Load Control Program (Rider L), which allows the utility to install a control device on customers’ central air conditioning units and remotely control the equipment when load reduction events are called. Customers can receive a control device from ConEd or enroll their own device through a service provider. 
     
  • Customers can enroll in the Curtailable Electric Service (Rider O) to provide "load reduction" and/or "load delivery" during a curtailment event. Customers must enroll a minimum of 50 kW per account. Curtailment events may occur on weekdays between 8 a.m. and 12 a.m. (midnight) and last from four to eight hours. Notification time will be no less than 30 minutes prior to a curtailment event.
     
  • Off-peak EV charging is incentivized by ConEd via its SmartCharge Rewards™ program. A ConEd telemetry device (called FleetCarma C2) tracks charging times and applies credit for conducting off-peak charging and avoiding doing so during on-peak hours.

Central Hudson offers several demand response options for commercial customers:

  • Through its Peak Perks initiative, Central Hudson offers commercial facilities a number of direct load control options, in which the utility installs a smart thermostat or a switching device on rooftop air conditioning units or pool pumps in order to cycle them during times when the grid is constrained or wholesale electricity prices are unusually high. Customers are remunerated $85 for signing up and then $75 per summer for each piece of enrolled equipment.
     
  • For customers in certain transmission-constrained portions of its service territory, Central Hudson offers the Targeted Demand Response program. Customers can earn roughly $27.30/kW each summer (June 1 to September 30) for their commitment to curtail a specified amount of load (relative to their five highest peaks in the past 10 days) for four to eight hours (the latter in extreme events). If no events are called, performance during a test event in late July/early August between 2 and 6 p.m. will determine remuneration. A minimum of 50 kW of reduction commitment is necessary to participate. Day-ahead notifications by the utility will be sent by 5 p.m. via email or phone. Same-day notifications are sent at least two hours prior to the event by email or phone.
     
  • The Commercial System Relief Program (CSRP) is very much like ConEd's offering of the same name, though with two options, one voluntary (for which payments are made only for called event performance) and one, the more lucrative "reservation payment" option, in which customers are also remunerated ($1.23/kW each summer month, June through September) for their commitment to respond to events. Customers in both options are paid $0.11/kWh for "planned events." (i.e., those with at least 21 hours' notice) For "unplanned events," (less than 21 hours' notice) customers in the voluntary options are paid $0.35/kWh, with $0.21 paid to the reservation payment participants. Events are called weekdays from 12 a.m. to 8 p.m. and last no more than four hours per event.

Note that, like ConEd and several other NYS utilities, Central Hudson offers longer-term options for customers willing to make multiple (three to five) year commitments to an offering comparable to CSRP. These longer deals will entail somewhat greater compensation amounts.

National Grid’s New York State electricity customers can participate in the utility’s version of the Commercial System Relief Program. As with Central Hudson’s CSRP offering, there is a "reservation payment" option with a fixed payment ($2.75/kW each month) for committing to perform, as well as performance payments that apply for both these customers ($0.18/kWh per planned event and $0.22/kWh per unplanned event) and also ones who choose the "voluntary payment" variant. Customers in the voluntary payment option receive a performance payment of $0.16/kWh for planned events and $0.19/kWh for unplanned events. Customers can participate directly if they can reduce by 50 kW or more, or through participating curtailment service providers (CSPs), which can often help find additional load reduction opportunities.

As with Con Ed (and various other NYS utilities), National Grid offers longer-term options, called Term-DLM and Auto-DLM, for customers willing to make multiple (three to five) year commitments to offerings comparable to CSRP. These longer deals will entail somewhat greater compensation amounts. The Auto-DLM program requires customers to respond much quicker as these resources are typically located in specific, constrained areas within the utility’s service territory. Notification occurs 10 minutes prior to a curtailment event. Customers enrolled in the Auto-DLM must be available to reduce load seven days per week between the hours of 6 a.m. and 12 a.m. (midnight) from May through September.

National Grid also offers its SC-3A rate, a day-ahead hourly rate, to its large commercial customers.

NYSEG provides several demand response options for commercial customers:

  • Similar to National Grid (above), NYSEG offers CSRP to its commercial/industrial customers who can curtail 50 kW or more between 2 and 6 p.m. on weekdays, from May through September. The reservation payment is $4.10/kW per month (or $4.35 if five or more events are called). For actual event participation, remuneration for both committed and voluntary participants is $0.50/kWh. CSRP provides customers with a minimum of 21 hours' notification for planned events. Like National Grid and other NYS utilities, NYSEG offers longer-term options for customers willing to make multiple (three to five) year commitments to an offering comparable to CSRP. These longer deals will entail somewhat greater compensation amounts.
     
  • Small commercial customers can participate in the Smart Savers Rewards program and receive $70 for each eligible internet-connected thermostat enrolled in the program. Customers allow NYSEG to make brief, limited temperature adjustments during periods when demand on the grid is high. Participants can earn an additional $20 if they fully participate in the program. With full participation, during adjustment periods, thermostats will automatically be raised up four degrees for up to four hours. Adjustment periods occur weekdays between 1 and 7 p.m. during the summer months (May 1 to September 30) and occur no more than 15 times per summer. Thermostats are automatically lowered to the normal set point after the adjustment periods are over. Participation in this program is voluntary and customers can opt out of any thermostat adjustment at any time. 

NYSEG also offers a day-ahead hourly pricing rate for commercial customers. For more information on this rate, contact NYSEG directly: 

Orange and Rockland (O&R) offers several demand response options for commercial customers:

  • The utility has two demand response options for its C&I customers, CSRP and the Distribution Load Relief Program (DLRP). The latter requires reductions with just two hours’ notice for events, whereas their CSRP offering provides 21 hours of notice. DLRP customers must be able to reduce demand between 6 a.m. and 12 a.m. (midnight) any day of the week, while CSRP customers can only be called on during weekdays. Customers must maintain a minimum four-hour load reduction per event. CSRP customers receive a monthly reservation payment of $3/kW and DLRP customers receive $3/kW in Tier 1 areas and $5/kW in Tier 2 areas. Customers in both programs receive a $0.50/kWh performance payment during curtailment events. Customers who are able to reduce their demand by 50 kW or more can apply directly with Orange and Rockland.  As with several other NYS utilities, O&R offers longer-term options for customers willing to make multiple (three to five) year commitments to offerings comparable to CSRP and DLRP. These longer deals will entail somewhat greater compensation amounts.
     
  • Commercial customers are also eligible to enroll in the utility’s time-of-use rates and save on their bills by reducing their usage during peak demand times, particularly the summer months (June to September), Monday to Friday (except holidays) between 12 and 7 p.m. Peak demand times in the winter months (October to May) are between 10 a.m. and 9 p.m., Monday to Friday (except holidays).
     
  • Customers can participate in the Bring Your Own Thermostat program by allowing O&R to make brief, limited adjustments to their central air-conditioning settings. Permissible "adjustment periods" occur from May to September during weekdays from 11:30 a.m. to 11 p.m. Adjustment periods last no more than four hours and occur no more than 10 times per summer (unless there’s a power emergency). Customers can elect to re-take control of their thermostat and adjust the temperature at any time. Customers will receive an $85 rebate for each thermostat enrolled in this program and $25 at the end of the summer season for each additional year enrolled in the program.
     
  • Commercial customers can choose to have their electric supply priced on an hourly basis by enrolling in the Basic Generation Service-Commercial Industrial Energy Price (BGS-CIEP) plan. Energy charges will vary each hour of the day, and every day of the week based on market conditions.

PSE&G offers several demand response options for commercial customers:

  • PSE&G Long Island offers its CSRP from May 1 to September 30. Load reduction events last approximately four hours. Customers receive reservation payments of $8/kW if also participating in the Distribution Load Relief Program, and performance payments of $0.25/kWh. Customers can participate through eligible curtailment service providers (CSPs), which can often help find additional load reduction opportunities, or enroll directly if they guarantee a minimum of 50 kW in load reduction per event. Notifications to load reduction events for CRSP customers must be a minimum of 21 hours in advance. 
     
  • The utility also offers a direct load control program, called Smart Savers, which allows PSE&G to make small temperature adjustments to customers’ thermostats that are enrolled with the utility. Customers receive a one-time first-year payment of $85 per enrolled thermostat, and a $25 payment for each subsequent year they are enrolled, as long as they reduce their load in at least 50% of events called by the utility. Events occur from May through September. Customers can elect to take control of their thermostat and adjust the temperature at any time.
     
  • PSE&G customers can also enroll in optional time-of-use rates and save energy costs by shifting demand away from peak demand times.

Rochester Gas & Electric (RG&E) offers several demand response options for commercial customers:

  • RG&E offers its C&I customers the CSRP. Terms are identical to NYSEG’s offering (see above) except for the payment rates. Customers can choose either the voluntary performance option or the reservation payment option. Both programs offer a performance payment rate of $0.50/kWh. The reservation payment option remunerates customers at $4.25/kW per month (or $4.50 if five or more events are called). Like several other NYS utilities, NYSEG offers longer-term options for customers willing to make multiple (three to five) year commitments to an offering comparable to CSRP. These longer deals will entail somewhat greater compensation amounts.
     
  • Small commercial customers can participate in the Smart Savers Rewards program and receive $70 for each eligible internet-connected thermostat enrolled. Customers allow RG&E to make brief, limited temperature adjustments during periods when demand on the grid is high. Participants can earn an additional $20 if they fully participate in the program. With full participation, during these adjustment periods, thermostats will automatically be raised up four degrees for up to four hours. Adjustment periods fall on weekdays between 1 and 7 p.m. during the summer months (May 1 to September 30) and occur no more than 15 times per summer. Thermostats are automatically lowered to the normal set point after the adjustment periods are over. Customers can elect to re-take control of their thermostat and adjust the temperature at any time.
     
  • RG&E customers can also enroll in time-of-use rates and save energy costs by shifting demand away from peak demand times.

The PJM Interconnection (PJM), a regional transmission organization (RTO), offers several demand response programs. Two specific programs may be attractive to federal facilities in the PJM footprint:

  • PJM's Capacity Performance program allows demand resources to participate in PJM's Reliability Pricing Model forward capacity market via an aggregator (any existing PJM member, such as their utility, a third-party electricity supplier, or a specialty curtailment service provider, CSP). Participants pledge to either reduce their load by a specified amount (guaranteed load drop, GLD), or to a specific kW level (known as firm service level, FSL), within one or two hours of an event notification. Load reductions are mandatory and may occur up to ten times per year, lasting up to six hours per event. While events can be called any day of the year, some CSPs offer a summer-only option (pairing those resources with winter-only ones at their disposal). Penalties for non-compliance are substantial. Remuneration is based on the results of the annual RPM capacity auctions in various PJM regions. Remuneration levels for the 2023–24 PJM year (which runs from June 1, 2023, to May 31, 2024) are in the $10,000 – $20,000 per MW range for most Pennsylvania customers. Participants are also eligible to receive energy payments for actual reductions, if and when the program is called.
     
  • The Economic Load Response program allows electricity users to provide load reductions in exchange for a payment based on hourly wholesale electricity prices. Participation is fully voluntary. Customers start by submitting load reduction bids (through their CSP) of at least 100 kW into the day-ahead energy market. Participants whose bids are accepted are paid for their load reductions based upon the day-ahead, hourly electricity market prices (the day-ahead "locational marginal price," or LMP). Reductions are figured based on a customer baseline load (CBL), which is essentially the average loads for the same hours in four of the facility's previous non-responding days. Regardless of which type of firm it is, the CSP will generally offer to split the revenues with the customer at a pre-determined percentage.

In both programs, participants can provide load reductions either through curtailing electricity use or by operating on-site generation consistent with local environmental regulations and permits.

PJM also allows energy efficiency projects to participate in its forward capacity markets, based on the Reliability Pricing Model. To be eligible, energy efficiency projects must reduce load continuously by at least 100 kW during peak summer hours. This load reduction can be bid into PJM's annual (for three years in advance) and "residual" (nearer-term) capacity auctions, and if selected will receive the auction clearing price. Interested customers can participate through contractors such as energy service companies (conducting ESPCs) or utilities (executing UESCs) at their sites.

Medium- and large-sized commercial and industrial customers (all those with peak loads above 100 kW) of PPL who do not choose third-party power supply incur generation rates based on the PJM day-ahead hourly rate for their zone.

PECO customers with peak loads over 100 kW who do not elect for third-party power supply incur generation rates (see Generation Supply Adjustment for Procurement Class 3/4) based on the PJM day-ahead hourly rate for their zone.

Duquesne also offers medium-large and industrial customers a Day-Ahead Hourly Price rider for customers that have a monthly billing demand of 200 kW or greater. Energy charges are provided at the day-ahead PJM locational marginal prices based on the customer's real time metered hourly load.

Duquesne offers an Electric Vehicle Time-of Use Pilot program. This program is offered to small commercial and industrial customers (monthly metered demand less than 200kW).

FirstEnergy customers in the Met-Ed, Penn Power, and West Penn Power service areas can take advantage of their Commercial & Industrial Demand Response Program, administered by CPower. Under the program, customers commit to reducing load for up to four consecutive hours on as many as six days (weekdays only) during the summer (June 1–September 30). Notification will always occur by 10 a.m. on the previous day.

First Energy customers in the Met-Ed, Penn Power, Penelec, and West Penn Power service areas can also enroll in an Hourly-Pricing Default Service rider. Energy charges are provided at the day-ahead PJM locational marginal prices based on the customer's real-time metered hourly load.

The Independent System Operator New England Inc. (ISO-NE) offers its Demand Resources programs, which provide payments to electricity users for load reductions (of as little as 100 kW), either by reducing usage or operating on-site generation during periods of high demand or prices. Customers may participate in the programs through any participating member ("market participant") of the New England Power Pool, such as a utility company, power marketer, competitive energy supplier, or independent curtailment service provider (CSP). A market participant is allowed to aggregate load to reach the quantity qualification limit, so interested customers with less than 100 kW to offer may want to contact their utility or other eligible party.

ISO-NE's Forward Capacity Market (FCM) allows customers to bid their load reduction capabilities—whether constant (such as an indoor lighting retrofit project), seasonal (such as a new energy-efficient chiller plant), or dispatchable (such as demand management or an on-site generator with controllable output)—into a capacity auction that allows demand-side resources to compete with supply-side ones. Bids that are accepted are paid the auction clearing price. These auctions take place annually for commitment periods three years in the future (though the qualification process begins roughly a year before the auction). Interested facilities should contact a market participant regarding the auction schedule; in addition, market participants may have unfilled capacity commitments ahead of the next auction.

Additionally, "active demand resources" (such as demand management or an on-site generator with controllable output) can participate in the Real-Time and Day-Ahead Energy Markets, which provide customers an opportunity to receive payments for responding to system prices or providing operating reserves that help maintain electric system reliability.

Rhode Island commercial customers of National Grid can participate in the utility's ConnectedSolutions program, either through a curtailment service provider (CSP) or independently. Customers have two options: Summer Targeted Dispatch and Daily Dispatch. The Summer Targeted Dispatch option asks customers to reduce their demand during periods of peak demand in the summer months (June through September). There are typically two to eight periods per season, and each period lasts up to three hours. Customers are remunerated at $35/kW. The Daily Dispatch option is similar but occurs much more frequently, typically with 30 to 60 demand reduction periods (2–3 hours each) per summer season. Customers are remunerated at $300/kW.
 

The Independent System Operator New England Inc. (ISO-NE) offers its Demand Resources programs, which provide payments to electricity users for load reductions (of as little as 100 kW), either by reducing usage or operating on-site generation during periods of high demand or prices. Customers may participate in the programs through any participating member ("market participant") of the New England Power Pool, such as a utility company, power marketer, competitive energy supplier, or independent curtailment service provider (CSP). A market participant is allowed to aggregate load to reach the quantity qualification limit, so interested customers with less than 100 kW to offer may want to contact their utility or other eligible party.

ISO-NE's Forward Capacity Market (FCM) allows customers to bid their load reduction capabilities—whether constant (such as an indoor lighting retrofit project), seasonal (such as a new energy-efficient chiller plant), or dispatchable (such as demand management or an on-site generator with controllable output)—into a capacity auction that allows demand-side resources to compete with supply-side ones. Bids that are accepted are paid the auction clearing price. These auctions take place annually for commitment periods three years in the future (though the qualification process begins roughly a year before the auction). Interested facilities should contact a market participant regarding the auction schedule; in addition, market participants may have unfilled capacity commitments ahead of the next auction.

Additionally, "active demand resources" (such as demand management or an on-site generator with controllable output) can participate in the Real-Time and Day-Ahead Energy Markets, which provide customers an opportunity to receive payments for responding to system prices or providing operating reserves that help maintain electric system reliability.

Burlington Electric Department (BED) offers its medium and large commercial customers the Large General Service Time-of-Use rate, in which on-peak summer (June 1–September 30, 12–6 p.m.) and winter (December 1–March 31, 6 a.m. to 10 p.m.) energy (kWh) charges are roughly 50% higher than off-peak, and the demand charge is over seven times higher (over $25/kW per month vs. roughly $3.50/kW) than during off peak periods.

BED offers monthly Electric Vehicle Charging Credits to customers on Small General and Large General Service Rates with BED approved devices. Customers will receive credit for charging their vehicle during the approved EV charging hours. Customers on the Small General Service Rate will receive $0.067 per kWh and customers on the Large General Service Rate will receive $0.043 per kWh when EV charging occurs during the approved EV charging hours.  Three options are offered through this program: Fixed EV Charging, Flexible Load, and Flexible Real-time. Approved EV charging hours are based on the option the customers choose and will be determined by BED.

Green Mountain Power offers several time-variable pricing rates to commercial and industrial customers, including:

  • The Commercial and Industrial Time-of-Use Rate, which is available to all small commercial, industrial, and agricultural customers on an optional basis, and required for customers that consume more than 7,600 kWh per month or with peak loads greater than 200 kW. This rate can help customers with demand flexibility reduce energy costs through lower off-peak kW and kWh rates.
     
  • The Critical Peak Rider, in which customers, with notice by 3 p.m. the prior day, are charged over $0.40/kWh during the business day and shoulder periods (6 a.m.–11 p.m.), versus the normal on-peak rate of roughly $0.108/kWh; off-peak (11 p.m.–6 a.m.) power is priced at roughly $0.084/kWh. The latter two represent significant discounts from GMP’s standard time-of-use rates. GMP may call a critical peak period on any day, within one hour's notice, for unforeseen events such as power plant outages, wholesale energy price spikes, or other system emergency conditions. No more than eight hours per day or 150 hours per calendar year can be deemed critical peak.
     
  • The Curtailable Load Rider, which is available to commercial and industrial customers year-round who are able to curtail power when called upon by GMP. Customers are billed for their demand charge based on what their maximum load is during a curtailment event, allowing them to reduce their power draw at these times and be billed for the lower demand. Customers under this rider are notified of a curtailment event before 3 p.m. the previous day. Participants may be given only one hour’s notice if GMP is experiencing emergency situations (e.g., unplanned generation outages or unusually high wholesale prices). Curtailment events last no more than four hours and can occur weekdays from 6 a.m. to 11 p.m. Participants must reduce their load by at least 25%.
     
  • The Load Response Rider, in which C&I customers curtail at least 500 KW during times of peak demand on the grid in exchange for having their monthly demand charge be based on their peak power draw during the previous non-event day. Customers are notified of a curtailment event at least one hour prior. Curtailment events last no more than five hours and occur no more than eight days per month. Curtailment events can occur at any hour of the day.
     
  • The Energy Storage System Service, which is available to General Service Non-Time-of-Use customers, allows them to lease or purchase eligible energy storage equipment owned by GMP. Customers in this program give GMP control of the equipment for use of the stored energy during periods of peak demand. There is no limit on the number of events, which occur on average six to eight times per month. Customers are remunerated for the energy they share with GMP during these periods while also having a backup power supply during times of power outages. Customers can pay $55 per month for a 120-month term ($6,600 total lease payment) or a single up-front payment of $5,500.
     
  • The Bring Your Own Device (BYOD) Program is available to GMP's small commercial customers, allowing them to purchase and install an energy storage system. Customers can enroll the equipment into GMP’s energy management platform and give access to GMP to utilize the stored energy during periods of peak demand, in exchange for generous incentive payments of roughly $900/kW for equipment that can relieve customer load on the utility for three or four hours. Participants cannot be on any time-of-use rates.

The PJM Interconnection (PJM), a regional transmission organization (RTO), offers several demand response programs. Two specific programs may be attractive to federal facilities in the PJM footprint:

  • PJM's Capacity Performance program allows demand resources to participate in PJM's Reliability Pricing Model forward capacity market via an aggregator (any existing PJM member, such as their utility, a third-party electricity supplier, or a specialty curtailment service provider, CSP). Participants pledge to either reduce their load by a specified amount (guaranteed load drop, GLD), or to a specific kW level (known as firm service level, FSL), within one or two hours of an event notification. Load reductions are mandatory and may occur up to ten times per year, lasting up to six hours per event. While events can be called any day of the year, some CSPs offer a summer-only option (pairing those resources with winter-only ones at their disposal). Penalties for non-compliance are substantial. Remuneration is based on the results of the annual RPM capacity auctions in various PJM regions. Remuneration levels for the 2023–24 PJM year (which runs from June 1, 2023, to May 31, 2024) are in the $10,000 – $15,000 per MW range for most Virginia customers. Participants are also eligible to receive energy payments for actual reductions, if and when the program is called.
  • The Economic Load Response program allows electricity users to provide load reductions in exchange for a payment based on hourly wholesale electricity prices. Participation is fully voluntary. Customers start by submitting load reduction bids (through their CSP) of at least 100 kW into the day-ahead energy market. Participants whose bids are accepted are paid for their load reductions based upon the day-ahead, hourly electricity market prices (the day-ahead "locational marginal price," or LMP). Reductions are figured based on a customer baseline load (CBL), which is essentially the average loads for the same hours in four of the facility's previous non-responding days. Regardless of which type of firm it is, the CSP will generally offer to split the revenues with the customer at a pre-determined percentage.

In both programs, participants can provide load reductions either through curtailing electricity use or by operating on-site generation consistent with local environmental regulations and permits.

PJM also allows energy efficiency projects to participate in its forward capacity markets, based on the Reliability Pricing Model. To be eligible, EE projects must reduce load continuously by at least 100 kW during peak summer hours. This load reduction can be bid into PJM’s annual (for three years in advance) and "residual" (nearer-term) capacity auctions, and if selected will receive the auction clearing price. Interested customers can participate through contractors such as energy service companies (conducting ESPCs) or utilities (executing UESCs) at their sites.

Dominion Virginia Power's Non-Residential Distributed Generation program offers a monthly incentive for customers who have backup generators and allow the company to remotely activate them during load curtailment events.  Backup generators must be at least 200 kW to participate in the program. Participants agree to have their generators operated up to 120 hours per year. Curtailment events are called with at least 30 minutes notice and can last between 4–6 hours.

Dominion’s Intermediate General Service Time of Usage (Schedule GS-2T) rate rewards commercial/industrial customers with peak loads below 500 kW for switching usage to off-peak periods (10 p.m. to 10 a.m., June through September; 10 p.m. to 7 a.m., October through May). Its two Large General Service rates (Schedules GS-3, GS-4, and 10) provide similar incentives for load switching.

The TVA-Enel X Demand Response Program provides payments to TVA customers in exchange for agreeing to reduce electricity consumption with 30 minutes notice during times of exceptionally high demand. Demand response events may occur year-round from 5 A.M. to 8 P.M. CT. Enel-X collaborates with customers to create an optimal demand reduction plan. Demand response efforts typically involve curtailing energy usage of such equipment as lighting, chillers, pumps, and HVAC equipment. Interested customers should contact their local electricity distributor.

Rappahannock Electric Cooperative (REC) offers the Curtailable Service Rider (Schedule CS-1) to its commercial customers that are able to reduce their load by a minimum of 50 kW when called upon by REC.

A&N Electric Cooperative offers time-of-use and curtailable rate riders for customers to enroll in and save money by reducing their peak energy demand.

The PJM Interconnection (PJM), a regional transmission organization (RTO), offers several demand response programs. Two specific programs may be attractive to federal facilities in the PJM footprint:

  • PJM's Capacity Performance program allows demand resources to participate in PJM's Reliability Pricing Model forward capacity market via an aggregator (any existing PJM member, such as their utility, a third-party electricity supplier, or a specialty curtailment service provider, CSP). Participants pledge to either reduce their load by a specified amount (guaranteed load drop, GLD), or to a specific kW level (known as firm service level, FSL), within one or two hours of an event notification. Load reductions are mandatory and may occur up to ten times per year, lasting up to six hours per event. While events can be called any day of the year, some CSPs offer a summer-only option (pairing those resources with winter-only ones at their disposal). Penalties for non-compliance are substantial. Remuneration is based on the results of the annual RPM capacity auctions in various PJM regions. The remuneration levels for the 2023–24 PJM year (which runs from June 1, 2023, to May 31, 2024) are in the $15,000 – $20,000 per MW range for DC customers. Participants are also eligible to receive energy payments for actual reductions, if and when the program is called.
     
  • The Economic Load Response program allows electricity users to provide load reductions in exchange for a payment based on hourly wholesale electricity prices. Participation is fully voluntary. Customers start by submitting load reduction bids (through their CSP) of at least 100 kW into the day-ahead energy market. Participants whose bids are accepted are paid for their load reductions based upon the day-ahead, hourly electricity market prices (the day-ahead "locational marginal price," or LMP). Reductions are figured based on a customer baseline load (CBL), which is essentially the average loads for the same hours in four of the facility's previous non-responding days. Regardless of which type of firm it is, the CSP will generally offer to split the revenues with the customer at a pre-determined percentage.

In both programs, participants can provide load reductions either through curtailing electricity use or by operating on-site generation consistent with local environmental regulations and permits.

PJM also allows energy efficiency projects to participate in its forward capacity markets, based on the Reliability Pricing Model. To be eligible, EE projects must reduce load continuously by at least 100 kW during peak summer hours. This load reduction can be bid into PJM's annual (for three years in advance) and "residual" (nearer-term) capacity auctions, and if selected will receive the auction clearing price. Interested customers can participate through contractors such as energy service companies (conducting ESPCs) or utilities (executing UESCs) at their sites.

PEPCO’s Time-Metered General Service rates (Schedules GT-LV, GT-3A, and GT-3B) provide commercial/industrial customers with time-of-use options, where off-peak usage, particularly in the summer (June through October), is significantly less expensive than during peak hours.

The PJM Interconnection (PJM), a regional transmission organization (RTO), offers several demand response programs. Two specific programs may be attractive to federal facilities in the PJM footprint:

  • PJM's Capacity Performance program allows demand resources to participate in PJM's Reliability Pricing Model forward capacity market via an aggregator (any existing PJM member, such as their utility, a third-party electricity supplier, or a specialty curtailment service provider, CSP). Participants pledge to either reduce their load by a specified amount (guaranteed load drop, GLD), or to a specific kW level (known as firm service level, FSL), within one or two hours of an event notification. Load reductions are mandatory and may occur up to ten times per year, lasting up to six hours per event. While events can be called any day of the year, some CSPs offer a summer-only option (pairing those resources with winter-only ones at their disposal). Penalties for non-compliance are substantial. Remuneration is based on the results of the annual RPM capacity auctions in various PJM regions. Remuneration levels for the 2023–24 PJM year (which runs from June 1, 2023, to May 31, 2024) are in the $10,000 – $15,000 per MW range for most West Virginia customers. Participants are also eligible to receive energy payments for actual reductions, if and when the program is called.
     
  • The Economic Load Response program allows electricity users to provide load reductions in exchange for a payment based on hourly wholesale electricity prices. Participation is fully voluntary. Customers start by submitting load reduction bids (through their CSP) of at least 100 kW into the day-ahead energy market. Participants whose bids are accepted are paid for their load reductions based upon the day-ahead, hourly electricity market prices (the day-ahead "locational marginal price," or LMP). Reductions are figured based on a customer baseline load (CBL), which is essentially the average loads for the same hours in four of the facility's previous non-responding days. Regardless of which type of firm it is, the CSP will generally offer to split the revenues with the customer at a pre-determined percentage.

In both programs, participants can provide load reductions either through curtailing electricity use or by operating on-site generation consistent with local environmental regulations and permits.

PJM also allows energy efficiency projects to participate in its forward capacity markets, based on the Reliability Pricing Model. To be eligible, energy efficiency projects must reduce load continuously by at least 100 kW during peak summer hours. This load reduction can be bid into PJM's annual (for three years in advance) and "residual" (nearer-term) capacity auctions, and if selected will receive the auction clearing price. Interested customers can participate through contractors such as energy service companies (conducting ESPCs) or utilities (executing UESCs) at their sites.

Appalachian Power Company and Wheeling Power Company (both subsidiaries of American Electric Power) offer a negotiable interruptible rate (Contract Service—Interruptible Power), but only to their very large, high voltage customers (taking power at 138 kV and above).

Appalachian and Wheeling also offer the General Service Time-of-Day (GS-TOD) and Large General Service Time-of-Day (LGS-TOD) rates, which allow customers to reduce energy costs by shifting their energy demand away from on-peak hours (7 a.m. to 9 p.m., non-holiday weekdays). The GS-TOD rate is available to customers with a demand of 150 kW or less, and the LGS-TOD rate is available to customers with a demand greater than 150 kW but less than 1,000 kW.