Curtailment & Demand Response Programs

Curtailment and Demand Response programs are geared towards reducing energy usage during the Critical Peak Periods. This is typically implemented by the utility notifying its customers (who have signed up for the program) to have them turn off non-critical equipment for that period. Curtailment events typically occur during the summer months between 2pm and 8pm and participants usually commit to curtail load up to six times per year.

The customer receives a lucrative payment from the Utility Company for these load reductions for several reasons; large scale curtailment can reduce the need for additional generation resources and prevent blackouts. In 2006, Utilities spent (and customers earned) $2.1 billion dollars to curtail 27,000 megawatts of electricity.