August 30, 2004—Pacific Gas and Electric Company (PG&E) urges business customers to sign up for the utility’s new Demand Response Programs as a way not only to save money, but also to reduce electricity demand on days when supplies are tight. Reducing peak demand helps California lower the risk of declaring a power emergency, which might otherwise impact all customers.
During summer months and with the heightened threat of wildfires to transmission lines, continued conservation and energy efficiency efforts will play a key role in ensuring adequate electricity supplies for all Californians. Businesses can help by participating in the new statewide Demand Response Programs. In fact, at a recent Energy Conservation Summit, Governor Schwarzenegger promoted these programs and other conservation efforts and urged business and residential customers to take advantage of these initiatives.
PG&E’s Demand Response Programs offer financial incentives for business customers who agree to reduce or completely cut off their power use when the California Independent System Operator (California ISO) declares a power emergency. The programs can also reward business customers for managing their electric load during days when shortfalls are predicted (also known as critical peak periods).
The following programs are available to medium and large business customers (200kW and above):
- Demand Bidding: Eligible customers earn bill credits for reducing power usage when contacted by PG&E. This is a no risk or penalty program for the customer.
- Critical Peak Pricing: Eligible customers receive lower summertime rates for contractually agreeing to reduce electricity usage during critical peak periods when declared by PG&E.
- E-SAVE: Eligible customers receive an incentive of 20 cents per kWh for reducing their power consumption by 20 percent when wholesale electricity prices are at or above 20 cents per kWh. (Example: A customer who conserves 1,000 kWh during an event would receive an incentive of $200.)
PG&E currently has 281 business customers in northern and central California participating in various Demand Response Programs, providing nearly a400 megawatts (mW) in demand reduction capability. That is equal to the amount of electricity needed to power about 300,000 homes. (One megawatt of electricity is enough to power approximately 750 homes.) Other programs are also available. For information businesses can contact their PG&E representative or call PG&E’s Business Customer Center at 800-468-4743.
