Forming an energy management plan: Demand response and energy rates

Energy Curtailment Specialists, Inc. (ECS) pays significant dollars to commercial, industrial, retail and other facilities to assist the electric grid during high-demand times. The program is known as PowerPay! On extremely hot summer days, the grid operator must find ways to support the increase in electrical usage along distribution lines. Without demand response, these high demands may result in service interruptions, voltage reductions or even blackouts, which in turn could cause millions of dollars of damages when businesses can't operate "in the dark" or their equipment or processes cannot withstand voltage fluctuations. ECS notifies PowerPay! customers of these high-stressed events and calls upon them to reduce their electricity usage. Through the combined reductions of thousands of participants, the overall demand on the electric grid is reduced and the grid operators can stabilize the grids. There are many reasons facilities participate in PowerPay!: First, the program pays significant dollars to participate...and it is at no cost. Additional benefits include free Smart Metering, protection from voltage reductions, and being recognized as an environmental leader. Finally, participation in PowerPay! can have a direct and significant beneficial impact on your energy rates, allowing you to save big money on your electric bills. ECS' sister company, BidURenergy (BUE), is one of the nation's largest energy advisors for businesses, specifically focused on bringing them the absolute lowest electricity and natural gas rates in the market with only the most credible suppliers. The PowerPay! Demand Response program ties directly into a customer's ability to manage their rates: First, demand response events typically occur at the highest priced energy hours of the year. ECS provides advance notice of these times so you can reduce your power and effectively lower your demand, capacity and energy rates. Secondly, enrolling in PowerPay! provides you with a free smart meter which provides hourly interval data, often in real time, which allows the customer to solicit rates from suppliers tied to how they use their energy specifically, not based on some general load profile that usually carries higher rates. The result is much lower rates for the customer. Both ECS's and BUE's services come at no out-of-pocket cost to the client, and can lead them to big energy cost savings in the long run. Jillian Chiarantona is a manager, Channel Partners department, at BidURenergy, Inc., Buffalo, N.Y.