Demand response has been important for electric system planning because it lowers the cost of electricity.  It has programs that are used by the electric system to balance supplies and demands. Time based are electricity rates paid from customers for different days, times of the day, and events. This guide companies to  cycle air conditioner and water heaters during periods of demands for lower electric bills.Demand response programs help providers to save money .The TOU (Time of Use) divides the day into blocks of hours and kilowatts prices vary between blocks. The another program from demand response is RTP (Real Time Pricing), which prices are hourly based on real time market price. Increasing the demands for electricity can cause voltage fluctuations. These programs reduce electricity demands for electric suppliers and grid operators. Demand response gives economics and environmental benefits for California. Utilities avoid building new power plants because of demand response. They want to increase the percentage of energy from renewable resources. The purpose of demand response is to expand grid modernization and development.

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References:

http://en.openei.org/wiki/Definition:Time-Based_Rate_Program

http://www.ecsgrid.com/demand-response-programs

http://www.cpuc.ca.gov/PUC/energy/Demand+Response/

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