Demand Response: Shifting Energy Use to Support Communities and Earn Cash Incentives

Business demand response programs allow utilities to reward commercial and industrial customers with cash incentives for voluntarily lowering energy consumption during high-energy demand days. Businesses, educational facilities, and municipalities can all participate in the effort to reduce demand.

While individual utility programs may vary, the key principles of business demand response are largely the same: a partnership between businesses and utilities to help maintain reliable electricity service during summer’s hottest days. At PSO, businesses that participate in demand response are known as Peak Performers.

What is Peak Performers?

Peak Performers is a load reduction program that rewards businesses for reducing or shifting electricity use during times of high demand. By joining, participating businesses earn substantial incentives that go directly to their bottom line.

If usage remains high over a sustained period, PSO will have to build new power plants, and the cost of new facilities would drive up electricity costs for everyone. Peak Performers is designed to reduce electricity use in our communities during peak times to help prevent that.

How does it work?

When PSO anticipates a spike in usage, we declare a Peak Event. During a Peak Event, businesses execute a usage reduction plan developed with the help of PSO. Participants have at least two hours to prepare and then reduce usage for two to four hours. Small changes can make a big difference. Many businesses shut off lights that aren’t in use or adjust thermostats a couple of degrees.

There are a maximum of 12 Peak Events per year, falling between June and September. Participation is completely voluntary and PSO does not control any of your facility’s equipment. Participating businesses may opt out of any peak event without penalty.

How will I be notified?

Peak Event notices are delivered via email or text message at least two hours prior to a Peak Event.

How can it benefit your business?

Once a year, PSO will pay your company $32 per Average Kilowatt Savings. If you participate in all Peak Events, PSO will pay you a bonus equal to 5% of your Average Kilowatt Savings payment. Since 2013, PSO has paid almost $16M in incentives. In 2020, PSO paid a total of $2.1M in incentives to 243 businesses.

Your participation in Peak Performers will help make sure that you and your neighbors have reliable access to power during periods of high demand. Lowering your electricity usage when demand is high helps offset the need for costly grid upgrades and new power plants, which in turn reduces greenhouse gas emissions.

How do I enroll?

Enrollment is easy – simply reach out to your account manager or enroll online now.