FAQ - Colorado Demand Response

Program FAQ: The Xcel Energy-EnerNOC Peak Savings Program

Reduce Energy and Earn Revenue with Demand Response

What is The Excel Energy-EnerNOC Peak Savings Program?

The Xcel Energy-EnerNOC Peak Savings program is a new opportunity for Xcel Energy’s commercial and industrial customers in Colorado that will help Xcel Energy balance its electricity supply and demand to ensure reliable and affordable electricity throughout its Colorado service territory. Xcel Energy is working with EnerNOC to implement this demand response program.

What is Demand Response?

Demand response (DR) is a way for customers to sign up to voluntarily reduce electricity consumption during periods of peak electricity demand or high wholesale electricity prices. Program participants earn revenue for agreeing to curtail electricity consumption when Xcel Energy calls for a demand reduction (also known as a demand response event). Demand reductions from DR act as a clean, efficient alternative to peaking power plants.

Is there any cost to participate?

No, there is no cost to participate in the Xcel Energy EnerNOC Peak Savings program.

Why Should I Participate?

DR provides you with a supplemental revenue stream, helps you reduce your energy costs, and increases overall efficiency. The Xcel Energy-EnerNOC Peak Savings program also supports Colorado’s energy efficiency and sustainability goals by helping to reduce the need to build new power plants in Colorado.

How do I Participate?

Xcel Energy and EnerNOC are working together to offer this program. EnerNOC manages program implementation and execution:

• EnerNOC works with you to identify electricity load that you could curtail for a limited number of hours per year, and determines an appropriate curtailment strategy that meets your specific business needs.
• EnerNOC installs a gateway at your facility to monitor your electric consumption levels and establish communication with our Network Operations Center (NOC).
• EnerNOC simulates a demand response event to ensure that operational conditions are satisfactory and that the curtailment level is acceptable.
• EnerNOC enrolls your facility in the program. The amount of demand that you commit to reduce is adjustable as your electric loads change and as you gain experience in the program.

What Types Of loads are Curtailable?

Nearly anything that consumes electricity can be reduced. Specific examples include lighting, HVAC, refrigeration, motors (particularly those equipped with variable frequency drives), and some types of manufacturing equipment (e.g. rectifiers, shredders). Our customers find that many energy intensive processes can simply be shifted to alternate times to facilitate event participation.

How is Curtailment managed?

Your curtailment strategy will depend on your preferences and existing energy management infrastructure. EnerNOC can integrate with your energy management systems or install our own technology to curtail load automatically and remotely from our Network Operations Center.

What happens when a Demand Response Event is called?

When Xcel Energy experiences high peak demand and anticipates the need for capacity, a DR event will be initiated. Once an event is called, EnerNOC will send you notification via email, phone, pager, or fax informing you that the demand response event will begin in 60 minutes, and will automatically initiate a pre-approved curtailment protocol at your facility. No action is required, and you maintain the option to withdraw from the event if operational requirements prevent participation. Prior to, during, and immediately after an event, EnerNOC’s Network Operations Center remains in close contact with your facility and are available at any hour of the day to answer any questions that you may have.

How often will an event be called? How long do they last?

A maximum of 2 events can be called per day and no more than 20 events per year. Events may be called at any time, but will typically be between 9:00 a.m. and 8:00 p.m., Monday through Friday, excluding holidays. Events will last for a minimum of 1 hour and a maximum of 8 hours, but will typically last 2 to 4 hours.

Are there penalties if my facility underperforms during a dispatch?

No. If your facility cannot reduce as much demand as expected, EnerNOC works with you to identify and address the cause. No penalties are imposed due to facility underperformance. EnerNOC will insure sufficient Demand Response to meet system reduction goals by combining the performance of all facilities.

What are the benefits of participation?

Supplemental Revenue:

The Xcel Energy-EnerNOC Peak Savings program provides revenue that goes directly to your bottom line. Payments depend on the amount of electricity demand your facility is expected to reduce, and your actual performance during DR events. You will receive a quarterly check for your participation.

Be more Energy Efficient:

All DemandSMART customers receive free, easy-to-use, real-time information on your facility’s energy consumption. Through DemandSMART's online tools, you can identify additional savings opportunities and increase equipment reliability.

Social and Environmental Responsibility:

Demand response is a clean, efficient alternative to peaking power plants. You can demonstrate social and environmental responsibility and enhance your reputation as a good corporate citizen by helping to maintain reliable and affordable electricity.