When do Demand Response programs take effect?
Different Calendars / Enrollment Schedules for Different Industries
Some industries have year-round Demand Response programs. Others, like agriculture, are on a more seasonal basis:
- For California Ag producers, 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
The Peak Energy Agriculture Rewards (PEAR) Enrollment-to-Incentive process
Simple 7-step process to enroll in PEAR:
- Third-Party Authorization - We ask your permission to review your electricity usage by submitting a form with your signature to the utility. The generic form is called a "TPA," a Third-Party Authorization form.
- Proposal - If your meter data shows high demand and strong usage during peak demand periods, we'll prepare a proposal showing how much we could provide in the form of free monitoring and control equipment as well as annual incentive payments.
- Add Form - If you like the proposal, we can begin the process of formally enrolling your organization into the PEAR program. This form tells the utility that you intend to sign up.
- Agreement - Our mutual obligations and utilities' pledge to compensate the respective parties. Term is three years.
- Equipment Installation - PEAR's proprietary control equipment will be installed by a certified electrician, most often from a pump and irrigation service company you use or are familiar with.
- Event Notifications - Always with an opt-out provision, sent by e-mail, voice message, text message, or whatever combination you choose. Can also be dispatched to multiple parties in whatever order you specify.
- Incentive Payments - Based upon actual results and paid in December each year. Average incentives total $3000 per service point.
Demand Response Events - Timing
The premise of Demand Response is that participants agree to reduce or shut down electric loads like pumps or compressors during critical peak demand events, which generally occur on hot summer afternoons.
- Load Nomination - By 20th of Previous Month (with PEAR representative)
- Max. Events per Day - 1
- Max. Event Hours Per Month - 24
- Max. Event Hours Per Year - 96
- Max. Test Events Per Year - 2
- Events Called in 2010 - 9
- Historical Avg. of Events Annually - 3
- Term of Enrollment - 3 Years
- Notification - By 3 pm Day Before
- Event Duration - 1 to 4 Hours
- Event Window - 11 am to 7 pm
PEAR Demand Response Incentives
Incentives accrue throughout the six-month Demand Response season. Dollar amounts vary by month, with July, August and September being the most lucrative months to participate. Incentive payments are made directly from PEAR to our customers in December. Cash incentives per customer averaged about $5000 in 2010.