We’ve already seen it this summer — extreme heat placing a significant burden on the electric grid. So much so that electric companies, like AEP Ohio, are asking customers to reduce energy use during periods of peak demand to help lessen strain on the grid and prevent power outages.
Adjusting your routine can feel inconvenient, especially when you’re trying to stay cool during a heatwave. These public appeals for energy conservation are often the last step in a long chain of actions utilities take to keep the grid stable. Before we ask for your help reducing demand on the grid, AEP Ohio takes several other actions behind the scenes.
Learn more about the role PJM, the regional grid operator, plays in helping balance electric demand.
Business Demand Response Program
AEP Ohio has agreements in place with many commercial and industrial customers that can help quickly reduce energy usage in short periods of time, reducing strain on the electric grid. They are typically among the first to reduce or shift their energy use during peak times by temporarily pulling back on operations. For example, this could mean a manufacturing facility pauses its production lines to quickly reduce energy.
Smart Thermostat Demand Response Program
Our Power Rewards: Smart Thermostat program rewards customers for reducing their electricity use when energy demand is high. On days when electricity demand is at its highest, or when distribution equipment is constrained, AEP Ohio may initiate an energy conservation event for those enrolled in the program.
Immediately before an event, your home may be pre-cooled in the summer or pre-heated in the winter at off-peak times by remotely adjusting your thermostat up or down a few degrees. Depending on how well it is insulated, your home should remain comfortable. While the event is underway, a signal will be sent to your smart thermostat to temporarily adjust your temperature set point by no more than 3 degrees. Your home will not instantly become warmer or colder. In fact, you may not notice any temperature change at all. At the end of the event, your thermostat returns to its target temperature and your original schedule.
And if you participate in at least 75% of the Power Rewards peak demand events throughout the year, you’ll also receive a $25 digital gift card annually.
Five energy conservation events have been called this year, with an average of 83% of customers enrolled in our Smart Thermostat Demand Response program choosing to participate. These proactive efforts to reduce energy usage have resulted in approximately 15 megawatts saved during peak times, depending on the number of participating customers.
Time-of-Use Tariff
This residential electric rate is tiered based on when you use power. Usage during off-peak periods is charged at a reduced rate, with a higher charge occurring during on-peak hours. This rate is designed to reward customers for helping to better balance demand on the electric grid.
All of this typically happens before you’re ever asked to reduce your electric usage or adjust your thermostat. However, even with all of these tools and programs in place, we still sometimes issue voluntary conservation requests to help protect the power grid in Ohio and beyond.
Answering Your Questions
Can’t large businesses just pull back on their energy usage when the grid is strained?
Many commercial and industrial customers have agreements with us to help them quickly reduce energy usage for short periods. These customers typically are the first to decrease or shift their energy consumption during peak times by temporarily scaling back operations.
Do my actions really make a difference?
Yes, the reality is that it takes all of us working together to make a difference — especially during peak demand. By working together and making smart energy choices, we can all contribute to a more resilient and reliable energy future.
Is there anything else you’re doing to ensure reliable power?
Yes, we’re continually working to improve the electric grid to ensure our customers have the power they need. We also recently recognized a ruling by the Public Utilities Commission of Ohio (PUCO) that addresses the power needs of Ohio’s growing data center industry while protecting AEP Ohio’s other customers. Read more here.
Saving energy can help you save money on your electric bill, but it also helps protect the electric grid and the power you rely on.
