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How to Make Use of Demand Response Programs for Getting Cheap Electricity

When you are a consumer of electricity with a really big consumption, then you can make use of the demand response programs which can surely help minimize the electricity bills. So many electricity suppliers provide such programs to be able to give incentives to their bigger customers and cut back on the electricity consumption on times of peak demand on electricity. The Southern California Edison, for instance, is offering demand response programs to such business customers that have electrical consumption which exceed 200 kW.

One common type of this demand response program is called the critical peak pricing or CPP. During the CPP program, such business customers are offered cheaper electricity rates for several months in order to exchange for those high electricity rates on a handful of critical peak periods. These are typically during the hot summer afternoons when a lot of customers run their air conditioners and they are also often declared a day in advance in response to the forecasts of high temperatures the next day. When a business can greatly reduce the electricity use on many hours of such critical peak periods, taking advantage of such critical peak pricing program can be a fantastic way to get cheap electricity.

Also, another type of demand response program is known as the demand bidding program, in which a business is going to bid a certain amount of electricity demand that it will give up during the peak demand period. Also, these periods are typically declared a day in advance, though some may also be declared on the day of the event. With this kind of program, the business is going to obtain such bill credit when it meets some or all the bid to reduce that electricity demand but it is often not penalized when such is not able to reduce the consumption of electricity The program can be a great thing for the businesses that like the option to save some money on electricity by minimizing such demand on the peak periods but don’t want to spend a lot when they are not able to reduce their demand on one or more periods.

Depending on the supplier of the electricity, you may also have other kinds of demand response programs which are available to your business. One common theme of these programs is that they would reward you through reducing such electricity demand on the peak demand periods. When your business can do this, then you would be likely to find such demand response program which may help you to save some money on the electricity bill.

It would be quite fantastic when you know more about such so that you can have more affordable electricity for the business.
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Post Author: aebi