Demand response is a last resort use for customers reducing their electricity use in high demand time. That’s a definition of the word. This is also when electricity is made the consumption must balance that and that’s how the consumer must cut back their use. Back in 2004 the U.S government has tried to help demand response.

While trying to help a new commission was formed known as The Federal Energy Regulatory Commission (FERC) they helped by regulating the orders affecting the transmission system. While this whole program was intended for consumers who use more than one million watts this also works for customers who use thousands of watts. Even with anyone who lowers their demand of electricity they can get a lower bill not once but every single month when they demand it. The most a consumers bill was lowered by 13 percent one month. This may not be the case for all since some loads can be lowered as much as the one consumer was. Some reasons why demand response is started are because the load would be too much for the generator if everyone used the most electricity at once.

If you still want save money then if you have a backup generator then some companies will pay you to use it when told to. When you do anything to help them then the payment you get would either be from a refund check or a discount off your bill itself. To be involved in the demand response program you have to reduce your load or you will be penalized for not. But some companies do not penalize you for not reducing. Overall demand response seems like a good way to save a few dollar’s every month only if you’re willing to lower your energy consumption which could be great for you and amount of greenhouse gas to emit every day.

http://0-www.lexisnexis.com.library.law.suffolk.edu/hottopics/lnacademic/
http://www.greenbiz.com/blog/2014/04/29/greenbiz-101-what-do-you-need-know-about-demand-response
http://energy.gov/oe/technology-development/smart-grid/demand-response
http://www.facilitiesnet.com/facilitiesmanagement/article/The-Need-for-DemandResponse-Programs–9194?source=part