Cleveland – October 12, 2026 -- Commercial facilities that enroll in demand response programs agree in advance to cut power use on request, often for financial compensation or lower standby costs, but those that miss committed reductions can see lower payments, according to a HelloNation article featuring Sandy Carpenter of Triple S Energy Management LLC.
Grid operators call events during forecasted heat waves or sudden grid strain
A demand response event occurs when grid operators ask select businesses to scale back power for a short window, which helps manage peak demand without more disruptive measures. Lead time depends on the program and event type. Alerts arrive by email, text or an automated signal to a facility's energy management system. Larger operations often let building automation execute the changes.
Facilities curtail HVAC, lighting, refrigeration setpoints and EV charging
A manufacturing plant might power down select equipment, while an office building might raise thermostat settings or dim lighting in low-traffic areas. Other curtailable loads include certain production lines and electric vehicle charging stations.
Emergency events are called only during serious grid stress. In economic events, a business chooses to participate when compensation makes it worthwhile. Enrollment typically runs through a utility, a grid operator or a third-party aggregator, which often manages much of the technical setup.
Metering data against a calculated baseline determines compensation
Most programs verify performance by comparing actual usage during an event with a calculated baseline. Many pay per kilowatt of load reduced, while others pay a standing fee for maintaining the ability to respond. Structures vary by program and region.
Carpenter urges facility managers to map adjustable systems and assign decision authority
Managers need to know which systems can be adjusted safely and for how long, and who inside the organization can make that call. Involving operations, maintenance and administrative staff in planning tends to reduce disruption during an event. Carpenter's view, as presented in the article, is that plans should be reviewed yearly because equipment, staffing and operational needs shift between seasons.