Demand Response – FAQ

What is the EnergyAdvisors Demand Response Program? – When demand for electricity is high and supply is short, power interruptions like blackouts and brownouts can sometimes result. Demand Response programs are designed to be both fiscally and environmentally responsible ways to respond to occasional and temporary peak demand periods. Demand Response offers significant financial incentives to businesses that volunteer and participate by temporarily reducing their electricity use when demand on the grid could outpace supply.

Do I have to shut my business down? – It is not necessary to completely shut down when asked to reduce. We are looking for companies with Peak Load Capacity (PLC) in excess of 150 kW that can cut back on their energy usage during rare electric emergencies by reducing lighting, A/C, motors, pumps, fans, elevators, using generators, moving production times around, etc. Our energy partners at Energy Curtailment Specialists (ECS) will help you identify the best reduction action plan for you. The more reduction you commit to and perform, the more $$$ you receive.

What does it cost? – Absolutely nothing! If needed, ECS provides you with the interval meter at no cost. They have paid their customers over $95 million dollars since 2001 and have an A+ rating from Better Business Bureau. ECS does not impose any financial penalties for under-performance.

How do you get paid? – ECS gets paid by PJM Interconnect, the grid operator, for having electricity resources on stand-by when demand exceeds supply. It is far too expensive for the utilities to build more power plants or to repair damaged equipment from grid failures. Demand Response was created to prevent blackouts and brownouts, & businesses like yours get paid by ECS for reducing load and helping maintain stability on the grid just like a mini power plant.

Will this interfere with our supply or utility? – Not at all. ECS is a private company, independent of any and all utilities and/or grid operator. Joining our Demand Response program will in no way affect your supply.

What’s in it for me? – Your company can add two streams of revenue for simply going green and helping maintain a safe and reliable grid. You get paid for your commitment to participate (being on standby for reducing electricity if needed, known as “capacity payments”) and for your actual reduced kWh during an event. You will also save on electricity when the prices are highest during these emergencies.

Who are some current ECS Customers? – ECS has over 10,000 customer facilities that are enrolled and represent an astounding 2,000 MW’s of power. Ford, ADM, International Paper, Marriott International, and PEPSICO, are proud ECS customers.

How many times have events actually been called? – Historically in PJM there has been an average of only 1 or 2 events a year.

What should I do next? – Contact your MBA member representative Chuck Jenkins at 1-814-833-3200 or toll free at 1-800-815-2660; or you can email cjenkins@mbausa.org for more information on how to sign up and take advantage of our Demand Response program.