DANVILLE, Va. – A decade after implementing its Demand Response Program with PJM Interconnection, Danville officials say the partnership has strengthened grid reliability and reduced costs for the community.
The program, which incentivizes local businesses to reduce power consumption during peak periods, was reviewed Monday by the city’s Utility Commission. It works by paying local companies to reduce their power usage to prevent strain on the grid during critical periods.
“It’s been very successful. It’s helped a lot of industrial and commercial customers help the grid during trying times,” said Jason Grey, Director of Utilities for Danville.
The program proved particularly valuable during Winter Storm Elliott in 2022. “In North Carolina, which is not part of PJM, the same event, they had brownouts and blackouts. Just a few miles up the road here in Danville, the actions of these participants avoided that,” said Bill Oosterom.
Since 2015, the initiative has conserved enough electricity to power approximately 70 homes. “A curtailment service provider actually acts as a separate generator. Just like a hydro plant or a solar farm. It’s a generator that can be coordinated or cut on at a moment’s notice,” Grey explained.
The voluntary program, open to all commercial properties in and around Danville, has provided over $877,000 in payments to participating companies for their power reduction efforts during its first decade of operation.
“We can keep the lights on. We can keep things running. We can keep businesses running because folks are voluntarily turning power off and making sure that the grid is reliable,” Oosterom said.
Danville has extended the program through 2027, continuing its efforts to maintain grid stability and manage utility costs for residents and businesses.