The Peak Energy Agriculture Rewards (PEAR) Program is a utility endorsed Demand Response program that offers free remote control /monitoring equipment  and cash incentives to PG&E Ag customers who reduce electricity use during Peak Demand Events.

PEAR is open to utility Ag customers who can reduce or temporarily shut off electric loads (50 kilowatts / 75-hp or higher) during Peak Demand Events, for example, growers irrigation pumps, cold storage operators, processors, feed mills, wineries, dairies and other agriculture operations. You must have Smart Meters or Interval Meters installed (or you must qualify for them)* and have access to the Internet with e-mail capability as well as telephone service to receive voice and/or text messages.

* Smart Meters and Interval Meters are capable of reading loads and transmitting through wireless networks to your utility. Customers can view data on the secure InterAct website. Customers without interval or Smart Meters will be enrolled after new meters are installed and 90 days of data are collected.

Contact a PEAR specialist to get started:

• Phone: 888-630-7327
• Email: info@PEARcalifornia.com
• Click to open online form

PEAR is currently being offered to Ag users in the Central Valley, with expansion to other areas to come. Email a PEAR specialist or phone 888-630-6327 to see if your specific location falls within the program scope.

You can enroll at anytime, but we recommend you sign up early in the year to ensure your equipment gets installed before Peak Demand Events begin (typically in June). Cash incentives are paid at the end of the growing season / prior to the end of the calendar year.

PEAR customers receive annual cash incentive payments averaging $5,000 per service point, avoid Peak Demand surcharges and get up to $20,000 of remote control / monitoring equipment free. In addition, the get significant operational benefits that can enhance yields, boost productivity and reduce costs.

PG&E estimates more than 2,000 electrical service points in the Central Valley could be impacted by Peak Day Pricing. You are likely to be subject to Peak Day Pricing surcharges if you answer “YES” to Questions 1 or 2 or 3 and “YES” to Question 4:

1. Has PG&E mailed you a letter or has your PG&E Ag rep notified you that you’re subject to Peak Day Pricing?
2. Do you have loads over 200 kilowatts (approximately 250 hp irrigation pump)?
3. Do you have a cold storage facility over 5,000 square feet?
4. Do you have Smart Meters or Interval Meters installed?

Peak Day Pricing is intended to discourage energy use during peak demand periods. For example, the average cost for a 200kW service point running for one hour could jump from $24/hour during non-peak times to $224/hour during peak demand events. Peak demand events typically happen:

• Hot summer afternoons when the need for power rises dramatically in heavily populated areas and affects PG&E’s entire service area
• During power grid emergencies or maintenance outages

Peak Day Pricing is in response to a statewide initiative by the California Public Utilities Commission (CPUC), which oversees all of the state’s electric utilities. The goals of Peak Day Pricing are:

• Reduce electricity needs during peak demand periods
• Avoid blackouts and stabilize the power grid
• Ease the load on existing power plants and defer the need to build new ones
• Lower the output of greenhouse gases
• Transition to “cost-based pricing” by aligning rates with the actual costs of power generation and distribution

Peak Day Pricing will apply to all PG&E agriculture customers throughout California. However, the greatest impact will be felt in the Central Valley. This is where there are the greatest number of service points that use over 200 kilowatts (a key threshold for Peak Day Pricing programs). Service points typically include large irrigation pumps, refrigeration systems for cold storage facilities and motors for food processing sites.

Starting Feb. 1, 2011, PG&E will begin implementing pricing program changes for agriculture customers. Actual customer enrollment dates will vary based upon a number of factors:

• Installation of Interval meters or Smart Meters
• Track record of 12 months of continuous electricity usage data

While all agriculture service points will be subject to either the Peak Day Pricing (PG&E) or Critical Peak Pricing (SCE) programs, there are two exceptions:

• If you have enrolled in a Demand Response program like Peak Energy Agriculture Rewards (PEAR) Incentive Program.
• You can "opt out" of either program for 1 year; however, you must notify your utility representative at least two business days prior to your scheduled enrollment date.
  • Once interval or Smart Meters have been installed and you become eligible for either program—you will be given a grace period to opt out of the program—however, you must notify your utility representative at least two business days prior to your scheduled enrollment date.

Demand Response programs are incentive programs offered by utilities to electricity users. In exchange for volunteering to reduce electricity use during short-term “peak demand events” (when high electricity demand could outpace supply), electricity users earn cash incentives. They sometimes also receive free equipment that helps them respond to a utility’s request to reduce electricity use.

While Demand Response programs are offered to all sorts of customers in many different industries, some Demand Response programs—like the Peak Energy Agriculture Rewards (PEAR) program—specialize in serving agriculture producers.

Electric utilities determine who can participate in their Demand Response programs. In some regions, only heavy users of electricity are asked to participate. In other areas, more widespread Demand Response programs may be offered. For California agriculture producers, the Peak Energy Agriculture Rewards (PEAR) program is a Demand Response program being offered to PG&E and Southern Cal Edison electricity customers who have electrical loads over 75 horsepower and the ability to reduce or shut down loads during peak demand events.

Turns out, it's actually cheaper and easier to incent some consumers to NOT use electricity when overall demand is very high than it is to build new power plants, transmission lines, substations and other expensive infrastructure.

Demand Response programs are offered in many states across the US, as well as in countries around the globe. California has been highly proactive in offering Demand Response programs. For agriculture users, California’s Central Valley is an ideal location for Demand Response programs due to the collision of energy, water and ag-related issues.

It depends on the utility offering the Demand Response program and the industries being asked to participate. For agriculture electricity users in California, the Demand Response season typically runs May through October. It’s best to enroll as early in the year as possible, as the enrollment and equipment installation process takes about 120 days. If you enroll after the Demand Response season, you will not see cash incentives until the following year.