PECO PECO Energy Efficiency & Demand Response 2 — Questions and Answers
Question 1: What does 'peak shaving' mean in the context of PECO demand management programs?
- Reducing electricity consumption during the highest demand periods to lower grid stress and capacity costs (Correct answer)
- Trimming overgrown trees near transmission lines to prevent outages
- Cutting generation output at peak efficiency points to extend turbine life
- Reducing billing peaks through budget billing enrollment
Correct answer: Reducing electricity consumption during the highest demand periods to lower grid stress and capacity costs
Peak shaving refers to intentionally reducing load during high-demand periods, which lowers the need for expensive peaker plants and can reduce capacity charges for large customers.
Question 2: Which PECO rebate program category typically offers incentives for replacing an old central air conditioner with a high-efficiency ENERGY STAR model?
- Residential HVAC rebate program under Act 129 energy efficiency portfolio (Correct answer)
- Commercial & Industrial equipment replacement grant
- Pennsylvania DEP air quality improvement subsidy
- Federal investment tax credit for renewable energy
Correct answer: Residential HVAC rebate program under Act 129 energy efficiency portfolio
PECO's residential HVAC rebates, funded through Act 129 compliance programs, encourage customers to upgrade to higher-efficiency air conditioning systems.
Question 3: What is the role of the PJM Interconnection in PECO's demand response activities?
- PJM operates the wholesale electricity market and coordinates regional demand response capacity commitments for PECO's territory (Correct answer)
- PJM sets PECO's retail rates for residential customers
- PJM builds and maintains PECO's local distribution lines
- PJM administers Pennsylvania's Act 129 energy efficiency targets
Correct answer: PJM operates the wholesale electricity market and coordinates regional demand response capacity commitments for PECO's territory
As the regional transmission organization for PECO's area, PJM manages the wholesale market and coordinates demand response resources as part of its capacity market.
Question 4: A PECO commercial customer wants to reduce its monthly demand charge. Which strategy most directly addresses the demand charge calculation?
- Staggering start times for high-draw equipment to lower the 15-minute peak interval reading (Correct answer)
- Increasing total monthly kilowatt-hour consumption to lower the per-unit rate
- Switching to a residential rate schedule
- Installing on-site solar without battery storage
Correct answer: Staggering start times for high-draw equipment to lower the 15-minute peak interval reading
Demand charges are based on the highest power draw measured in a short interval, so staggering equipment start times prevents simultaneous peaks and reduces the measured demand.
Question 5: Which type of energy storage technology is increasingly used in PECO's territory to support demand response and peak shaving for commercial customers?
- Lithium-ion battery energy storage systems (BESS) (Correct answer)
- Pumped hydroelectric storage
- Flywheel kinetic energy storage
- Compressed natural gas storage tanks
Correct answer: Lithium-ion battery energy storage systems (BESS)
Lithium-ion BESS systems are widely deployed at commercial sites to store low-cost off-peak energy and discharge during peaks, reducing demand charges.
Question 6: What is the 'negawatt' concept as it applies to PECO's energy efficiency planning?
- A unit of power representing electricity saved through efficiency measures, treated as equivalent to generated supply (Correct answer)
- A measurement of negative power flow on the distribution grid
- A billing credit awarded for grid-tied solar generation
- A penalty charge assessed for exceeding contracted demand limits
Correct answer: A unit of power representing electricity saved through efficiency measures, treated as equivalent to generated supply
The negawatt is a conceptual unit coined to describe saved electricity as a resource equivalent to generated electricity, forming the basis for treating efficiency as an alternative to new power plants.
PECO PECO Energy Efficiency & Demand Response 2
What does 'peak shaving' mean in the context of PECO demand management programs?