In a press statement, Consumers Energy said its new demand response programme, Peak Power Savers, aims to help the utility to meet peak demand.
Under the initiative, Consumers Energy will introduce Time of Use energy pricing in which energy tariffs will be high during peak demand periods and low when energy demand on the grid network is low.
The demand response programme is expected to help Consumers Energy to reduce its carbon footprint and operational costs by avoiding investing in the construction new energy generation plants to meet very high energy demand in summer.
Lisa DeLacy, executive director of smart energy at Consumers Energy, said: “We are committed to helping Michigan households manage their energy use. These new programs give more options to our residential customers to lower bills and are another great benefit of new upgraded meters that we will finish installing across the state this year.” [Consumers Energy to complete AMI rollout end of 2017].
The utility's demand response programme will be divided into three sub-divisions including the air conditioner (AC) peak cycling in which Consumers Energy will install devices to lower the energy usage levels of consumers’ AC systems.
Consumers will be awarded a gift card and credit on their energy bills for signing up to participate in the AC Peak Cycling which will be implemented during the summer months of June through September.
Under the Peak Rewards Time of Use demand response initiative, customers of Consumers Energy will receive credits on their monthly bills for reducing energy consumption during peak hours every day between June and September.
Under the Critical Peak Time of Use programme, customers will be rewarded for reducing their energy usage during peak hours throughout the year. Energy costs will be extremely high during DR days for consumers participating in the Critical Programme.