Load Management on the Horizon

What is load management?

Load management systems are put into place to reduce peak electricity demand during periods of high energy use. In today’s energy environment of skyrocketing costs, peak periods of energy use are the times when wholesale electricity costs the most. Reducing energy use during these times will help reduce costs – for you and the REMC.

What is the goal of the load management program?

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 a device that enables us to control your water heater during times when demand for electricity is at its peak.

How will SCI reduce demand?

Our principal method of reducing demand will be through the use of a load control receiver (LCR). Signals will be sent through the power lines to the LCR to turn off the water heater when a new peak demand is possible, such as on very hot or cold days. LCRs may be activated for parts of an hour over a 2 to 6 hour time frame, usually in the afternoon, but sometimes in the morning. Most water heaters are capable of holding their heat for extended periods of time, so there’s little or no inconvenience to you. The program can result in significant long-term savings to the REMC and its members! Plus the receiver and installation are free.

How will I know when the LCR is activated? Is it possible to bypass the receiver?

The LCR will have an LED light display window on the front. A flashing green light indicates that the receiver is powered up and a red light indicates the receiver controlling the water heater. The LCR cannot be over-ridden or bypassed from your home.

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 load 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.

We all can save

Because of the fact that peak demand can influence electric rates, load management is being devised to prevent us from reaching or exceeding the peak. An additional benefit of load 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 load control receivers?

We anticipate installation of the devices will begin in late 2009 or early 2010. Please watch our website for updates regarding this program.