How Off-Peak & Interruptible Programs Work

Electric power utility companies offer off-peak control programs, the programs that are offered vary between the different power utilities depending on who they are and the public they serve. Co-ops are more likely to offer more programs to save their customers money because they buy their electricity from the larger electricity producers and usually do not produce electricity themselves. In rural areas, versus metro areas, there are generally more options to how someone will heat their homes or water, so the rural power utilities take this into account and are able to offer more off-peak programs because of the ratio of alternative heating sources to customers.

Here are a few examples of off-peak control systems;

• Air Conditioners
• Water Heaters
• Electric Boilers for Hydronic Heating Systems (Radiant Baseboard or In-Floor Tubing)
• Electric Thermal Storage Heaters
• Electric Baseboard Heaters
• Air and Ground Source Heat Pumps

Electricity is generated at the power plants usually at a constant rate of production, meaning the generators run at the same speed, but during peak demand period times, approximately 3pm to 9pm, the generators may be induced to produce more power or standby peak generators may be started to compensate for the need for more electricity. If this is not done, there may be brown-out or black-out situations that arise. During peak hours when the generators increase power or the peak generators are started, naturally, more fuel is needed to run these generators and this is why the off-peak programs were started. The power utilities that have to purchase their electricity buy it in "blocks" of so many kilowatts or megawatts, if they need to purchase more to meet their customers demand during peak periods, all of the electricity may not be used. (I know this sounds strange because electricity is not a physical substance but it can be explained with math and engineering theory, but that's for another day. But I can say that electricity does have mass, in the esoteric sense.) So instead of buying more electricity, they offer the customer an option of saving money on some of their electrical appliance usage in exchange for being able to turn those appliances off during peak hours, in this way they do not need to buy the extra electricity for peak demand hours.

The power utility mounts a load control receiver near the controlled appliance or metering box and during peak demand periods the power utility sends a signal to the load control receiver to interrupt power. The utility's agreement has language that defines the times that power to these appliances can or will be interrupted but very rarely is it the total time that is stated, except for storage heat and storage water heaters. Many people think that the power utilities are trying to control the homeowners lives with these programs or trying to hold them hostage for higher rates but in reality, the power companies are trying to keep rates low and are looking out for the best interest of their customers. Most power utility companies that I have dealings with are concerned for the customer and do their best to give electrical power in the most efficient and cost effective manner possible.