Understanding Demand Response: Who Initiates and Manages These Events?

Discover how demand response events help manage electricity during peak times and how Meltek notifies you to save energy and earn rewards. Learn who initiates these events and how you can participate effectively.
July 16, 2024

There may be some confusion when high temperatures are forecast, but no event is announced, leading customers to wonder why no 'event' is called despite the heat.  

What is a demand response event?

A demand response (DR) event occurs when a utility requests users to shift or reduce their electricity use, which helps manage the grid during periods of extra-high demand.  

Severe temperatures, damage to power lines, or planned maintenance can all cause these occurrences. They are also known as "conservation events," "peak events," or "peak hours." Language often depends on its utility.

Who decides when and where a demand response event is called?

As a Demand Response Aggregate for various utilities (including Con Edison, PSEGLI, Orange & Rockland Utilities), Meltek combines the efforts of demand response participants. We act as an intermediary between customers and utilities/grid operators.

Events are always called by the local utility, normally by an engineering group responsible for operating the grid. They look at how much load is being used and where, and whether parts of the grid are out of service, such as for repair, and they then predict where over the next couple of days the grid may be overwhelmed and only ask for reductions when the predictions show load reaching about 95% of capacity.  

When a heat wave first hits (like the ones in late May or June) and the temperature spikes from 85 to 95 in a day or two, buildings, sidewalks, and basements are still cool, so air conditioning can handle the heat well, and events are localized. But, when nights are hot too (like in July and August), and there have been several days in the 90s, air-conditioning is pumping as much as it can, and the grid gets stressed across the entire system, causing utility engineers to ask everyone to do whatever they can. In addition, the grid experiences its highest stress during specific times of the day, such as late afternoon, when people get home from work, turn on everything, and start running appliances.

How does the program at Meltek work?

Meltek uses an automated notification system with both email and text messages to give users as much information as we have, with as much time as possible, and we appreciate everyone's participation in events.

Meltek provides a free energy-saving program for residents and businesses.

Here's how our program works in 3 simple steps:

  1. Sign up at app.meltek.com or download our app from your smartphone's app store. Add your basic contact information and utility details when prompted. You will get alerted by Meltek to energy-saving events, usually a day in advance. This is a time frame when demand for electricity is at its highest (typically on hot summer days), and we will pay you for using less electricity during that time.
  1. Act- Conserve energy during the event by unplugging, switching off devices, pre-cooling your home, or changing the AC temperature.
  1. Get paid by Meltek for saving energy. Transfer your earnings directly to your bank or use them to get a wide variety of gift cards, donate to charity, buy carbon offsets, or plant trees! The more you save, the more you earn from Meltek. The choice is yours!

After learning what a demand response event is and who calls it, you can visit our other blog for tips on what to do in such demand response events.