Our Demand Response Automation (DRA) program is designed to shift our customers' peak demand, delaying the need to build new, expensive peaking power plants. Upon notification, program participants are expected to reduce total metered demand by their contracted amount. In return, we offer these businesses valuable incentives.
Curtailable Option – This Option allows participants to reduce their demand using any method of their choice, including use of other sources of power. There will be a minimum of three curtailment events each summer, giving participants the opportunity to earn at least $57 per kW annually.
Emergency Generator Option – This Option is similar in design, but allows the use of emergency generators (as defined by RICE NESHAP) to curtail load. Under this Option, participants are expected to curtail load a minimum of one time each summer during the annual readiness test, resulting in the opportunity to earn a minimum of $45 per kW per year. Additional events will only occur when Duke Energy Progress has declared a NERC Level II (EEA2) reliability alert level.
* Customers should contact their state environmental agency to determine impacts of participation in the program on permitting and classification requirements for standby generators.
Businesses that participate in the Demand Response program receive:
The primary purpose of the Demand Response Automation (DRA) program is to reduce and shift peak customer demand, thereby delaying or eliminating the need for our company to build expensive new power plants.
Our commercial, industrial and governmental customers are eligible as long as each participating service base is capable of contracting for a minimum of 75 kW of peak demand reduction. Some exclusions apply to certain customers, including those who currently participate in other riders or certain rate schedules. Please see the program rider for more details.
The program provides three forms of incentives. Participants receive all three:
We’ll pay the monthly and performance incentives via bill credits. You can choose to receive the one-time participation incentive as a bill credit or as a check. To receive an incentive check, you’ll need to provide a Form W-9.
Participants under the Curtailable Option may reduce their demand using any method, including use of other sources of power. The Emergency Generator Option is available only to customers transferring electrical load to a standby generator during curtailment events and allows for participation using a generator with an emergency classification. You should contact your state environmental agency to determine impacts of participation in the program on permitting and classification requirements for standby generators.
You’ll have the option to:
If you choose to have us remotely control your equipment, eligible electrical equipment will be identified during a site survey, and Duke Energy Progress will work with you to develop an agreed-upon control scheme.
In order to gain access to the necessary data, we’ll exchange the existing metering equipment with a program-compatible interval meter and install a two-way cellular communication device. If you elect to be remotely controlled, we will provide one relay switch used for shed/restore functions. However, it will be your responsibility to mount the switch and make electrical connections to the controlled equipment.
Participants are guaranteed a minimum of 30 minutes advance notice of any curtailment event. Typically, messages are sent out several hours prior to the start of a summer event and may be sent out as early as the day before a winter event. You may select multiple members of your staff to receive the notices. Notices are available via phone, email, fax, pager and text messaging.
Participants are expected to reduce their total metered demand by the seasonal contracted kW amount during the time specified in the event notification. In each calendar year, there will be a maximum of 10 total curtailment events, which generally last for six to eight hours. The Curtailable Option will have a minimum of three summer curtailment events. The Emergency Generator Option will have a minimum of one summer test event, which will be considered a curtailment event.
During peak periods, participants will be deemed noncompliant if their actual demand reduction during an event falls below 90 percent of their contracted demand reduction. Each noncompliant event will result in the loss of four months of future monthly credits under the Curtailable Option and a loss of six months of future monthly credits under the Emergency Generator Option.
Peak periods are defined as follows:
Summer peak period: June-September, 1-9 p.m. on weekdays
Winter peak period: December-February, 5-10 a.m. and 5-11 p.m. on weekdays
Participants are also expected to comply during events outside the peak periods. However, failure to curtail outside peak periods will not be considered noncompliant and will not result in loss of future monthly credits.
The DRA program uses a baseline demand to estimate what a participant's demand would have been in the absence of a curtailment event. Demand reduction for an event will be equal to the calculated event baseline demand less the average registered demand during the event, not to exceed 150 percent of the contracted demand reduction.
Participants may reduce their contracted demand reduction amount without charge at the end of any contract period. The amount may also be adjusted, upon Duke Energy Progress approval, during a four-week period immediately following any curtailment event, provided it is not adjusted more than twice in a calendar year. Additionally, participants may request, by providing written notice 30 days in advance, a downward adjustment to their contracted demand reduction amount related to a permanent change in equipment or operations.
There are two primary participant agreements that require a time commitment and, in some cases, a signature from an authorized customer executive. Participants will enter into an initial DRA contract period of five years, with automatic extensions of two years thereafter. Participants must also acknowledge loss of the right to be exempt from payment of the DSM/EE rate for a period of 10 years from the effective date of initial participation in the DRA program. The DSM/EE rate provides funding support for a portfolio of Duke Energy Progress efficiency and demand-side management programs including DRA.
Current participants represent a wide range of industries, including hospitals, national chains, water treatment facilities and industrial operations. Since there is a minimum number of annual events, participants tend to be those who can easily shift production, manage inventories or switch to supplemental power using standby generators.
Please contact your Account Executive or email us for additional information on the program.