The demand for electricity fluctuates throughout the day. If many people try to use electricity at once, like during the afternoon on a hot summer day, that demand can hit what’s called a peak period.

During these peak periods, energy demand can sometimes exceed an energy utility’s generating capacity. This can put additional stress on the electric grid, potentially causing disruptions in service. It can even increase electricity costs for customers, especially if their energy provider needs to purchase additional power or build a new power plant to keep up with the growing demand.

That’s where demand response programs come in. They can help balance energy supply and demand, preventing service disruptions and increased electricity rates.

Through demand response programs, energy customers are encouraged to reduce consumption or shift their electricity use to non-peak periods. This can be as easy as raising the thermostat a few degrees to reduce air conditioning load, or waiting until the evening to run the dishwasher. In return for their participation, customers can save money with time-based rates, bill credits or other financial incentives.

With demand response programs, customers can do their part to help energy companies provide reliable electricity for the whole community. The cost savings are just an added bonus.