Demand response is a resource that allows electric customers to voluntarily reduce their electricity usage in response to a price signal, financial incentive, environmental concern or reliability emergency. By lowering usage at these times, customers are able to help lower wholesale energy prices and possibly prevent rolling black-outs by offsetting the incremental amount of electricity needed to meet increased demand during high load periods. It is a tariff or program that was designed to motivate changes in electricity use by end-use customers that can help modify the load profile of a utility or region.
Common methods of…
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