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What is ‘Demand Response?’

July 2, 2024

We may all still be recovering after a string of mid-June temperatures saw highs approach triple digits. In extreme weather like this, we are encouraged to stay out of the direct heat, which results in many seeking shelter in their air-conditioned home.

On those days with high heat, as the AC is running more frequent, dinner prep is underway, TVs are on and the dryer is running – we use a lot of energy. Now, imagine your neighbor is using similar appliances and electronics during this time – along with other neighbors on your street, in your subdivision, on your side of town and throughout your city. After a while, it adds up, but through simple, voluntary actions, this can become less impactful. 

Throughout the year, energy demand changes within our footprint, as well as nationwide. There are several factors that influence energy demand, but a large contributor is weather. What makes summer unique is cooling for your home is dependent on electricity. Which may add up when we see extreme temperature hikes.

Demand Response is when there is a need to balance the demand on the power grid by encouraging customers to reduce or shift energy usage out of peak times. In response, I&M may issue an alert for a “Peak Energy Event” to customers who have voluntarily chosen to participate in one of our Power Reward programs. Typically, these peak times occur around the 4-6 p.m. timeframe, as individuals start returning home after work and school. Customers who do opt into this program will be asked to reduce their energy use during this designated time. Taking such actions are not mandatory or required for customers.

With the Power Rewards programs, I&M customers can earn bill credits when they voluntarily sign up to participate and shift their energy use outside peak hours. Participation in these programs can help keep prices more affordable for homeowners and other I&M customers. By visiting the Power Rewards website, take the quiz to select the program that matches your home and unique needs – all at no cost. Additionally, homeowners have the choice how much and how long to participate in each peak event.

But how are someone’s actions impactful in these situations? I&M is part of a larger regional power grid that is overseen and monitored by an organization called PJM Interconnection. PJM monitors how much power is being generated by I&M and other energy providers throughout its area covering 13-states and the District of Columbia.

PJM has the generation capacity to meet expected demand on its system during a heat wave. When there are prolonged periods of extreme heat, stress can be added to the electric system, causing challenges, which is why PJM closely monitors the situation and communicates with impacted utilities. This may lead to I&M’s Peak Energy Events, where customers voluntarily conserve energy, reducing the demand on the system.

Can you still run your air conditioning during these events? Absolutely, but consider possibly setting the thermostat a little higher. Do you have order takeout to save energy? Supporting local businesses is always great; however, using appliances that use less energy like a microwave or slow cooker can help with dinner prep during peak times.

For more information on Power Rewards Programs and additional energy-saving tips, visit www.ElectricIdeas.com.

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