Millennial Living

Getting paid to use less Electricity and Natural Gas

Demand Response and Advanced Metering programs now allow you to earn some money for reducing your electricity and natural gas consumption just like the big companies do. The programs also have the following benefits:
  • Enhance the reliability of the electric system,
  • Reduce additional power purchases and individual consumer costs,
  • Delay the construction of power plants and transmission lines which is good for the environment, and
  • Don't require a drastic change in lifestyle.

Ambient Device's Energy Joule is being marketed in New York

The above of programs are not an excuse for not buying energy efficient lighting, new windows, high efficiency air conditioners, heat pumps and appliances that have good Energy Star ratings.

Who can enroll in Demand Response and Advanced Metering Programs Home owners, small manufacturers, schools, high rise residential buildings, nursing homes, hospitals, hotels and other commercial facilities may be eligible for these programs. If your utility does not offer a program, then contact your State Public Utility Commission and find out when they will offer it. Just be sure to mention the words Demand Response, Advanced Metering or Smart Meters when you speak to your utility or State Commission.

There may even be similar programs available for natural gas that respond to high demand in the Winter months. Again, call your natural gas company and State Public Utility Commission to find out.

Kinds of Demand Response and Advanced Metering Programs
Demand Response and Advanced Metering Programs vary by utility, because the State Public Utility Commissions have to approve them and their features. Lets start with a definition of what a demand response program is.
Demand Response
Typical meter with module installed on itAn electric demand-response program can consist of any action taken to reduce electricity demand in response to price, monetary incentives, or utility directives to maintain reliable electric service or avoid high electricity prices.

Demand reduction activities occur principally during the summer when electricity demand is highest. However in the Pacific Northwest the winter months may see high electricity use for heating. The same goals apply to natural gas, but in the winter months.
Advanced Metering
Participating utilities can install an advanced meter in your home or business. Some of the advanced meters can record your electricity consumption at least hourly and allow for daily or more frequent retrieval of your energy use data.

Others meters are simpler and use colored lights to make you aware of prices. Advanced metering also provides you information on the price of electricity hourly.

Armed with this knowledge you can reduce demand in response to a higher price in one of three general ways:
  • Involuntary programs allow your utility to turn off or reduce your electricity consumption at certain times of the year. You give total control to the utility of when it will turn off your air conditioning or another major appliance. These programs pay you the most since the utility company knows that it can reduce the demand for electricity for everyone in the program when needed.
  • Voluntary programs provide your with the price of electricity each hour, but you decide what appliances or electricity to turn off or will not be changed. These programs don't pay as much as the involuntary programs.
  • Voluntary Programs with Time Varying Prices of Electricity involve enrolling in a program and agreeing to go off the Standard Flat Rate.
Who's Who in Demand Response and Advanced Metering
Ambient Devices' Energy Orb being used in CaliforniaState Public Utility Commissions and utilities in California, New York, Illinois, Connecticut, Maryland, and Michigan have the most aggressive demand response programs that are either in effect or being developed. Virginia may also developing programs under their energy efficiency program.

These commissions and the utilities they regulate are promoting a variety of demand response programs including offering time-based rates instead of the standard flat rate that we are all so used to.

Comverge's Superstat Smart Meter for residential and small business Several companies provide advanced meters. Ambient Devices provides several devices that rely on color to alert residential and small businesses when prices are high.

Comverge provides an entire array of products that can be used in the full range of voluntary and involuntary control programs.

Time-Varying Prices of Electricity scare some people
Many of the State Public Utility Commissions are also promoting time varying prices as a part of their demand response and advanced metering programs. Don't be afraid of the idea of time varying electricity rates. They certainly are not for everyone, but many residents and small businesses might be able to benefit from them.

You should be able to go back on the Standard Flat Rate if you are unhappy with the demand response program (Note: Ask to make sure! In fact, you've been dealing with time varying rates and prices for years and taking advantage of them too.

For example, when you made that air plane reservation online or on the phone, you were probably asked if your travel plans were flexible. If you answered "Yes", you may have found that if you left after 8:00 pm instead of 2:30 pm, you would save $200 on air fare.

You also deal with this every day when you hail a taxi, or take a train or bus during rush hour or the non-rush hour period. Also, don't forget those department stores that run sales between certain hours of the day or on a weekend. Irrespective what you decide in the above examples, at least you were given the price information and based your to base your decisions on it. You don’t have a choice with a standard flat rate.

How to Sign Up for a Demand Response or Advanced Metering Program now
The time to look into and enroll in Demand Response and Advanced Metering Programs is right now. The summer has passed and electric utilities will be looking at how well their plans did. There are usually limitations on the number of people who can enroll so it pays to take action as early as possible. It may be too late to enroll in natural gas demand response programs.

There are two ways to get information and to enroll in the programs. You can contact your electric or natural gas utility or contact energy companies that specialize in demand response and advanced metering programs. Manufacturers, schools, high rise residential buildings, nursing homes, hospitals, hotels and other commercial facilities may find it easier to deal with these specialized companies instead of their utility. Try both and see how the service is.

Here are the steps you should take
  1. Get out your electric bill or natural gas bill and call customer service,
  2. Ask them what Demand Response and Advanced Metering Programs are available and request enrollment forms and literature. Note, some utility web sites have very good online information about their programs. See the list of investor-owned electric utilities or public power utilities which are prevalent in the Western US.
  3. Read over the literature and determine what program is right for you. This may be based on how much you will earn and what the program requires you to do. Remember that the programs that pay the most are usually involuntary programs, i.e. the utility will decide what appliances to turn off and when.
  4. Enroll for a year and compare your energy bill to last years. The utility should be able to do that for you.
Energy Companies specializing in Demand Response and Advanced Metering
Many demand response companies can assist manufacturers, schools, high rise residential buildings, nursing homes, hospitals, hotels and other commercial facilities to earn money while reducing the strain on our over-burdened electricity grid. We've listed just a few.
  • APZ Inc.
  • Consumer Powerline Inc.
  • Energy Curtailment Specialists Inc.
  • Energy Connect,
  • EnerNOC Inc., and Converge

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