Demand response is the concept of end-use customers changing their electric energy usage in response to changes in electricity rates, emergencies or pricing incentives provided by utility companies. The goal for utility companies is to lower system-wide demand during peak times through controlled loads reductions rather than building additional power generation infrastructure. Demand response, although around for years, is emerging now as utilities’ most promising method of dealing with increased pressure on their supply during high usage times such as summer peak hours. It is less expensive for utilities to create incentives for industrial and commercial users to lower their energy demand during peak times than it is for utilities to produce additional electricity and sell it to those who cannot alter their energy consuming behavior. |