Utility Studies Voluntary Demand Reductions Using THE DEMAND EXCHANGE
For 30 years, utilities have used voluntary customer-direct, load-control “load-management” programs with customers to reduce electricity use during critical times. Progress Energy Florida (St. Petersburg, Florida, U.S.) continues to explore new avenues for greater customer choice in ensuring reliable energy load management across its system.
“We're researching a new type of load-management program that allows where the customers to chooses when and if to participate and at what price,” said John Masiello, manager of program development and administration at Progress Energy Florida. “We're targeting commercial and industrial customers who are not currently participating in traditional interruptible or curtailable load-control programs.”
Using Apogee Interactive's (Atlanta, Georgia, U.S.) THE DEMAND EXCHANGE platform, an Internet-based information and transaction portal, Progress Energy Florida has launched a market research program designed to quantify how much demand can be shed and at what price.
Currently, Progress Energy Florida is working with participating customers to identify the load-reduction potential at each facility based upon their installed equipment and specific operating patterns. Then, using 15-minute-interval metering and an online data presentment and analysis package, customers will receive daily load-shape information through THE DEMAND EXCHANGE interface.
Progress Energy Florida will periodically send price signals over the exchange to alert customers of the opportunity to voluntarily reduce consumption for payments during specified hours. The customer can then formulate demand reduction options and calculate potential savings online.
“We're equipping customers with the tools and information they need to make informed decisions,” said Masiello. “Using the Internet, our notifications of opportunities are virtually instantaneous. Customers can then make their own choice as to whether or not to reduce their electric demand for a financial credit.”
Preparation for the project will be completed this month, and the pilot will run for 16 months. The company will then compare the results with other methods of load management in terms of customer satisfaction and cost effectiveness.
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