If you're a business electricity customer with a comparatively giant amount of electricity usage, you will be in a position to take advantage of demand response programs to reduce your electricity bills. Several electricity suppliers provide these programs so as to supply incentives to their larger customers to cut back on electricity usage during times of peak electricity demand. For example, Southern California Edison offers most of their demand response programs to business customers with electrical demands exceeding 200 kW. We will discuss a number of varieties of demand response programs which will be out there to your business.
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A very common type of demand response program is often known as crucial peak pricing, or CPP. During a CPP program, business customers are offered cheaper electricity rates for most of the year in exchange for very high electricity rates during a handful of critical peak periods. These crucial peak periods are sometimes on hot summer afternoons, when several customers are running their air conditioners, and are typically declared daily ahead in response to forecasts of high temperatures the following day. If a business is in a position to strongly scale back its electricity use during the several hours of these important peak periods, profiting from a essential peak pricing program will be a great method of getting cheap electricity.
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Another kind of demand response program is that the demand bidding program, in that a business can bid an quantity of electricity demand that it says it can offer up throughout a peak demand period. These periods also are sometimes declared each day ahead, although some might be declared on the day of the event. In such a program, the business receives a bill credit if it meets some or all of its bid to reduce electricity demand, but is typically not penalized if it does not reduce its electricity use. Such a program may be more palatable for businesses that wish the option to save cash on electricity by reducing their demand during peak periods, but do not need to pay a heap if they're not in a position to scale back their demand throughout a number of of those periods.
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Depending on your electricity provider, you may also have other varieties of demand response programs accessible to your business. The common theme of these programs is that they will reward you for reducing your electricity demand throughout peak demand periods. If you business is capable of doing this.
