Supporting Your Cooperative Through Demand Response Programs

For municipal utilities and rural electric cooperatives, which often operate within constrained budgets, managing load growth while ensuring grid stability is no small feat. A key contributor to these challenges is the energy demand from national retailers. While these businesses play a vital role in boosting local economies through commerce and job creation, their substantial energy consumption can place significant stress on local power grids, especially during peak demand periods driven by extreme weather or seasonal fluctuations. Fortunately, many of these retailers actively participate in Demand Response programs. These initiatives provide an effective solution by enabling utilities to lower costs, enhance grid reliability, and advance sustainability objectives. These programs ensure uninterrupted service for national retailers while giving utilities a competitive edge in delivering affordable, reliable energy. Surprisingly, many cooperatives don’t currently offer them—now is the perfect time to start.

The Strategic Value of Demand Response for Utilities

Demand response programs are designed to help utilities manage periods of high energy demand by incentivizing businesses to adjust their energy consumption. For national retailers, this could include minor operational changes, such as adjusting HVAC settings, dimming lighting or rescheduling energy-intensive activities during off-peak hours. With automated and flexible DR solutions, utilities can enroll and implement these programs seamlessly, ensuring retailers experience no disruption to their daily operations or customer service.

By leveraging DR, municipal utilities and cooperatives can build stronger community ties, create new revenue streams and position themselves as forward-thinking energy providers.

Why Municipal Utilities & Cooperatives Should Prioritize DR

1. Provide a Competitive Edge
   Utilities that implement innovative DR solutions position themselves as progressive energy providers. Cutting-edge DR tools like Enersponse’s Price Response™ enable utilities to shield retailers from the financial risks of peak demand or energy pricing, enhancing their value proposition and strengthening long-term partnerships.

2. Drive Immediate Savings & Generate Revenue
   Demand Response (DR) programs offer financial benefits for both utilities and their retail customers. These programs help utilities avoid costly, high-emission energy sources while enabling retailers to earn incentives by reducing peak demand

3. Improve Grid Reliability and Resilience
   By reducing strain during peak periods, DR programs extend the lifespan of aging infrastructure and prevent costly outages. Utilities that proactively address grid stress can ensure reliable service even during extreme weather or unforeseen crises.

4. Support Sustainability Goals
   Demand Response (DR) programs help utilities and retailers reduce energy consumption during peak periods, which often rely on fossil fuels. Enersponse’s Clean Response takes this a step further by dynamically adjusting energy use to prioritize cleaner energy sources. For example, the program can throttle energy use when the grid is relying on fossil fuels and automate energy-intensive tasks during periods when renewable sources are more available. This approach offers a turnkey solution for utilities and retailers to meet ESG objectives while supporting a cleaner energy future.

5. Generate Community Recognition
   Utilities that prioritize DR demonstrate a commitment to affordability, reliability and sustainability. This strengthens trust and collaboration with residents and businesses, positioning the utility as a valued partner in supporting local economic and energy needs.

Real-World Success Supporting Retailers

Demand response programs deliver measurable benefits for utilities and national retailers alike:

• Enersponse Case Study: A national grocer with 123 locations:

• Energy Reduction: 4,160 kW

• Cost Savings: Over $998,000 in the first year of participation

• Carbon Reduction: Avoided over 215,000 lbs. of CO₂ emissions

These results were achieved using automated DR solutions that dynamically adjusted energy loads during peak periods without impacting retail operations. The success showcases how utilities and retailers can work together to drive financial and environmental outcomes.

Flexible Tools to Support Utility Objectives

Utilities can leverage DR tools tailored to their specific goals:

• Customizable Participation Models: Ensure flexibility so retailers can participate in DR programs without operational disruptions.

• Unique Price Response™ Solution: Automatically reduce energy use during periods of high prices to stabilize costs and support grid health.

• Sustainability-Oriented Clean Response Program: Help utilities and retailers meet environmental goals by throttling energy use during carbon-intensive periods.

For utilities, DR programs represent more than just an energy management tool—they are an opportunity to strengthen community relationships, support local businesses and showcase a commitment to innovation and sustainability. By leveraging flexible, automated DR solutions, utilities can balance grid demands, reduce costs and contribute to a more resilient energy future, all while ensuring their community's needs are met effectively. These programs not only enhance operational efficiency but also solidify the utility’s role as a value-added and future-focused partner in driving economic and environmental progress.

Join the Conversation at the NEXT Conference

Discover how DR can benefit your utility operations and strengthen community relationships by reaching out to Dan Docel at the NEXT Conference by Touchstone Energy in Indian Wells, Calif. from February 3-5. Learn more about how these programs provide a competitive advantage for municipal utilities and rural cooperatives while supporting national retailers.