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Energy Management Program
What is energy management?
Energy management utilizes a special device called a Demand Response Unit (DRU) that is installed inside the home to cycle off electric water heaters, air-conditioning units or air-source heat pumps.
This program will help SCI better manage costs, conserve energy, help the environment and lessen the impact of rate increases. By participating, you will allow SCI to install the DRU enabling us to control the water heater and air-conditioning during times when demand for electricity is at its peak.
Why we need to control
Demand is a measure of how much power is being used at a given time. Turning off the power to a water heater, for example, reduces demand. The purpose of energy management is to prevent SCI REMC from exceeding a preset maximum amount of power being consumed by all member loads combined -- this maximum is called a peak. You probably know that electric rates are determined by the total amount of power delivered, but they can also be affected by usage of all member loads combined at the time of the peak. If a new peak is set, we are assigned a new demand charge on our bills from our power supplier. Though not right away, your bill will be affected by this demand charge: that’s because eventually, if the cooperative has to pay more for power, it’s inevitable someday that we'll have to adjust rates to cover increased costs.
How will SCI reduce demand?
Our principal method of reducing demand will be through the use of a Demand Response Unit (DRU). Signals will be sent through the power lines to the DRU to cycle off the water heater and air-conditioning when a new peak demand is possible, such as on very hot or cold days. DRUs may be activated for parts of an hour over a 2 to 6 hour time frame. Most water heaters are capable of holding their heat for extended periods of time, so there’s little or no inconvenience to you. For air conditioners or air-source heat pumps, the compressor will be cycled off for brief periods however the circulating fan will continue to operate. There may be a slight increase in the temperature inside your home but it should not be significant or uncomfortable. The program can result in significant long-term savings to the REMC and its members! Plus the DRU and installation are free.
The energy management system will normally only be operated during peak periods during the months of June through August and December through February.
How will I know when the DRU is activated? Is it possible to bypass the receiver?
The DRU will have an LED light display window on the front. A flashing green light indicates that it is powered up and a red light indicates that it is controlling the water heater, air-conditioner or both. The DRU cannot be over-ridden or bypassed from your home.
We all can save
Because of the fact that peak demand can influence electric rates, energy management is being devised to prevent us from reaching or exceeding the peak. An additional benefit of energy management is reduced construction costs (e.g., new substations) for the utility, and therefore, reduced costs for the consumer. Since the amount of equipment and electric cable required is determined by how much power is delivered, by reducing the amount of power, the utility can conserve the need for additional construction to service a particular area.
When will SCI start installing the demand response units?
Contractors selected by SCI REMC will begin installing DRUs in March. Our goal is to have 1,000 units installed during the first year.
There is no cost to the member for the installation of the DRU.
What are the incentives for agreeing to allow SCI to install a DRU?
Members who agree to participate in the energy management program will receive a one-time $25 credit on their electric bill for the installation of the DRU on the electric water heater or air-conditioner/air-source heat pump. If the DRU is used to control both the water heating and air-conditioning, you will receive a one-time $50 credit on your electric bill.*
*Members who are in need of a new electric water heater can purchase one from SCI for $150, a savings of $100, when they agree to have a DRU installed. The $25 credit noted above is included as part of the special pricing.
How do I sign up for this program?
Complete this form and mail it or fax it to our office to the attention of Paula. Mail to: South Central Indiana REMC, 300 Morton Avenue, Martinsville, IN 46151 or fax to: 765-352-4821.
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