Demand response (DR) programs pay commercial and industrial customers to voluntarily reduce electricity consumption during peak grid stress events. ISO operators and utilities run these programs to avoid costly emergency generation. For businesses with flexible load, DR can offset energy costs while supporting grid reliability.
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How Demand Response Works
When grid demand exceeds available supply or prices spike, the ISO or utility sends a curtailment signal to enrolled DR participants. Participants reduce their electricity consumption by a defined amount — called their nominated capacity reduction. In exchange, they receive capacity payments (paid year-round for being enrolled) and event payments (paid per kWh not consumed during events).
ISO Demand Response Programs by Market
PJM (PA, OH, NJ, IL, MD): Emergency Load Response and Economic DR programs — capacity auction payments, event payments. ERCOT (Texas): Emergency Response Service (ERS) and Load Resource programs. ISO-NE (MA, CT): Real-Time Demand Response and Capacity Demand Resource programs. NYISO (NY): Special Case Resource and Emergency Demand Response programs.
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What Qualifies for Demand Response
Accounts typically need to be able to reduce load by at least 100–200 kW reliably during events. Ideal candidates: accounts with discretionary load (HVAC setback, lighting reduction, process delay), backup generation (can island and reduce grid draw), refrigerated storage (can pre-cool), or industrial processes that can be shifted.
The Economics of DR Enrollment
Capacity payments are typically $50–$200 per kW/year in PJM markets. For a 500 kW reduction capacity, that's $25,000–$100,000/year — regardless of how many events occur. Event payments are additional. DR enrollment can be a meaningful revenue stream for commercial accounts with appropriate load flexibility.
Demand Response and Energy Procurement
DR enrollment can interact with supply contracts — some suppliers offer combined DR/supply products, while others require separate enrollment. We evaluate both approaches for accounts that qualify and include DR economics in the total cost picture when recommending procurement strategies.
Frequently Asked Questions
How does a commercial energy broker get paid?
Brokers are compensated by the supplier you choose — a small per-kWh fee built into the contract rate. This fee exists in every supplier's pricing regardless of whether a broker is involved. You pay nothing out of pocket.
How many suppliers will you get quotes from?
We submit to 30+ licensed retail energy suppliers active in your state. Not all will quote every account — load size, credit profile, and industry classification affect who bids. We pull from the full available market.
How long does the process take?
From data collection to competing offers typically takes 3–5 business days. Contract execution takes another 1–2 business days. Service transition happens on your next billing cycle — no interruption.
Is there a contract with the broker?
No. You authorize us to collect your usage data and solicit quotes on your behalf. There's no fee arrangement, no retainer, and no commitment until you choose a supplier offer to execute.
What if I'm currently under contract?
We'll review your existing contract terms, note the expiration window, and initiate a quote process 6–9 months before expiration. If there's an early termination option that makes economic sense, we'll flag it.