New and better way to help utilities beat the heat
Electric utilities are facing a huge challenge during this summer's brutal heat wave in the U.S. The load on their "grid" has reached all-time highs in many areas, making it challenging and expensive to keep up with the demand.
Electricity prices go through the roof for utilities on really hot days!
One smart grid concept utilities use to help reduce the load on their grid is called Demand Response (DR). They offer relatively small incentive programs -- say $25 per year -- for homeowners to be able to shut off your air conditioning (AC) compressors for hours at time during times of peak load on the grid. If you have more than one AC system, they may turn them all off.
In some cases, utilities offer programmable thermostats that they can control wirelessly during periods of peak loads.
I don't know about you, but I would prefer to be in control of when my AC runs or not.
Well, there is a better way. It's a concept that's been around for a long time and it's called Demand Side Management, It should be called "Consumer Side Management", because the consumer is in control of how their home runs.
Curbing peak demand is a simple concept. Don't let your big appliances run at the same time. When you turn your oven on to pre-heat, let's have the AC turn off for a few minutes to reduce the load on the grid. Or if you have two ACs, then let's make sure they do not run at the same time.
And if you throw in a utility rate plan that encourages consumers to cut their peak demand, they can reduce their electric bills -- upwards of 30% or more in some cases. Now that's a smarter grid!
So the next question is "how do we make this work?"