Demand Response is when there are changes in electric usage. Demand Response are programs designed to be fiscally and environmentally responsible. Demand responses are ways for a quick response in times like peak hours. Cost and environmental impact are a big scenario.

Demand Response programs have incentives like temporarily reducing usage for businesses who voluntarily participate in the program. There are even particular programs such as PEAR, Peak Energy Agriculture Rewards that specialize in serving agriculture producers: Irrigation, Cold storage and Processing are a few of the specialized services.

“The electric power industry considers demand response programs as an increasingly valuable resource option whose capabilities and potential impacts are expanded by grid modernization efforts.”(energy.gov) During peak hours this program helps to reduce the cost and use of electricity.

Demand Response programs can lower the cost of electricity in most large markets. Time based rates like time of use pricing,critical peak pricing,variable peak pricing, real time pricing and critical peak pricing. Direct load control programs provide the ability for power companies to cycle air conditioner and water heaters during peak hours in exchange for lower electric bills. Overall Demand Response is beneficial and will create cheaper electric bills in the long run.

http://pearcalifornia.com/what-is-demand-response-program

http://energy.gov/oe/technology-development/smart-grid/demand-response