FREQUENTLY ASKED QUESTIONS |
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- What is a Demand Response Program?
- How much does it cost to enroll in the ECS Demand Response Program?
- Is there any special equipment required to participate?
- What are the penalties for non-performance?
- How much do I get paid?
- When and how do I get paid?
- What makes the ECS Demand Response Program unique?
- How does ECS get paid?
- How do I curtail?
- How do I know if my facility qualifies?
- Is ECS affiliated with my electric utility?
- Can I participate in this program directly with my utility?
1. What is a Demand Response Program?
The California Independent System Operator (CAISO) oversees California State's electricity grid and has the responsibility of maintaining a reliable, safe and efficiently operating grid. The most dangerous thing to an electricity grid is an extremely high electricity demand, which most typically occurs when the weather is extremely hot for an extended period of time. As demands increase, there is a continuing need for more and more supply. Given the many environmental and other restrictions, chances are that supply will never catch up pace with the increased demands. Simply put, there are occasional times (usually only a few times a year) when the demands are forecasted to be higher than the available supply. Because this situation can potentially cause blackouts or brownouts, the electric utilities with the “push” of FERC and various state agencies, had to come up with a plan to reduce electricity demand for these short but tenuous periods of time – this is the birth of California’s Demand Response Programs.
Although ECS is administering CAISO's programs, we are going one step further – developing our own straightforward and simpler version of the program to make it easy to understand. Our program is called "Cut Back California". Simple: ECS pays you significant dollars for you to agree in advance to reduce some level of your power usage (up to you how much power you commit to reduce) upon a day ahead notice, usually only a few times per year. You are not financially penalized if you fail to perform when called upon (other than you wouldn't receive the dollars for the amount you didn't reduce). ECS pays you under 2 separate streams: first, for the commitment to reduce; and secondly, for the energy that you don't use when you reduce. ECS is the largest demand response provider in USA.
Notification by ECS takes place on a day-ahead basis (usually the afternoon of the day prior to the request) in advance of an anticipated need for energy reduction with participants being contacted via phone, fax, e-mail, pager etc. that a reduction has been called for. Energy reduction may be achieved either through the utilization of on site generation (if allowed in the particular utility control area) or via a reduction in electricity consumption. To see if your facility qualifies and the amount of dollars the program could mean to your facility
CLICK HERE .
In light of the persistent problem in California with an ever-increasing demand for electricity and a stagnant supply to meet that higher demand there has never been a better time to participate in a Demand Response Program. Thousands of facilities across the USA have enrolled in ECS’ programs earning millions of dollars for their active participation!
Need suggestions on How to Reduce, CLICK HERE
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2. How much does it cost to enroll in the ECS Demand Response Program?
There is NO COST TO ENROLL! Energy Curtailment Specialists can provide you with a new source of revenue while helping to reduce your energy costs with absolutely no cash outlay for your participation. No catch; you will pay ECS (or anyone else) nothing to participate!
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3. Is there any special equipment required to participate?
In order to determine how much energy you curtail, we need to be able to determine the interval demands at your facility during an event. If you are not already interval metered (chances are that you are not), either your utility or ECS will install such a meter at no charge. There is no charge for either the meter or the installation. This easily installed metering provides data you can utilize to more effectively manage your facility's energy usage.
If you are interested in automating your electric reduction so that when a call is made the reduction takes place automatically without any involvement by you…OR if you would like the ability to automate the reduction internally by YOU pressing a button, the ECS Power Direct technology will greatly enhance your participation and $$$
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4. What are the penalties for non-performance?
ECS does not impose out of pocket financial penalties for non-performance! Financial penalties and similar non-performance clauses force the client to assume the risk and typically outweigh the potential benefit of participating in such demand response programs. The effect of failing to perform is merely that any debits associated with your failure to perform in a particular hour or day is reduced from the credit you receive from performing at other times during the Program Period. You will NEVER be billed for anything in excess of those credits. The worst case scenario EVER is that you will be paid nothing if you do nothing. No risk, no out of pocket penalty.
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5. How much do I get paid?
The dollar amount you are eligible to earn is pre-determined and stated clearly within your agreement. We do not base our payments for standby capacity on a percentage basis subjecting you to the fluctuations of the market. Our Energy Payments (available during an emergency event) have a minimum earnings floor representing a guarantee of revenue based on the level of your participation during an emergency situation. In order to find out how much your facility could expect under this program, submit the form by CLICKING HERE.
- A poly bag manufacturer received over $10,000 annually
- Catholic School earns in excess of $3,000 each year
- Manufacturer is paid over $50,000 annually
- Nursing home sees revenue exceeding $15,000
- Manufacturer increased bottom line by over $500,000 last year
- ECS customers have earned over $7 million dollars in the last 3 years
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6. When and how do I get paid?
Payment is made once a year, at the end of each Program Period (October or November). In certain specific instances, ECS might consider paying a participant on a monthly basis, 60 days following each particular month. You will receive a check or checks directly from ECS and you are not funded via a credit on a bill from your supplier. ECS is entirely independent from your utility.
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7. What makes the ECS Demand Response Program unique?
A summary of key differentiators:
- As the largest demand response provider in the United States, ECS brings the value of economies of scale, thus allowing for the most revenues to you. Size is important in demand response programs because it hedges risk for ECS, which in turn allows ECS to offer the program to you at NO RISK.
- Working with ECS positions you to participate in a unique demand response curriculum which provides a revenue stream on two fronts, first for your commitment to curtail and, secondly, for your actual curtailment performance when called upon. You are paid for your commitment in a given month even if there is no call to reduce electric (which is likely in at least 2 or 3 months of the 6 month Program Period). Conversely, should you be enrolled in another demand response program which pays only when an actual emergency event is called, there would be no earning potential available to you unless an event is actually called.
- ECS does not impose out of pocket financial penalties for non-performance! Financial penalties and similar non-performance clauses force the participant to assume the risk and typically outweigh the potential benefit of participating in such programs. Under ECS’ program, the effect of failing to perform is merely that any debits associated with your failure to perform in a particular hour or day is reduced from the credit you receive from performing at other times during the Program Period. You will NEVER be billed for anything in excess of those credits. The worst case scenario EVER is that you will be paid nothing if you do nothing. No risk, no out of pocket penalty. Most other available programs impose penalties upon you if you do not perform. No Penalties = No Risk; Penalties = Risk!
- The dollar amount you are eligible to earn is pre-determined and stated clearly within your contract. We do not base our payments on a percentage basis subjecting you to the fluctuations of the market. A pay-out structured on a percentage basis unnecessarily exposes the client to a loss in a down market while allowing the provider to maintain a fee at your expense.
- We install, where required, interval metering---and it is 100% free! There is no charge for either the meter or the installation. This easily installed metering (which does not require you to power down your facility) provides data you can utilize to more effectively manage your facility’s energy usage.
- You will receive a check directly from ECS and are not funded via a credit on a bill from your supplier. In many programs you simply get a credit on your bill and the value of your performance is mixed together with an array of numerous other items on the utility bill. When ECS gives you a check, you have something tangible which you can use for whatever purpose your company deems fit.
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8. How does ECS get paid?
ECS is an authorized demand response aggregator for the various California utilities. We have passed all requirements for being a demand response provider in California. As such, we administer these programs by enrolling larger electricity users like you and selling your "reduction" to the utility at an agreed-upon rate. Your agreement in advance to curtail power or utilize your generator is actually a commodity that is bought and sold. The difference between what we offer and what we are paid by the utility is what we use to pay our employees and administer the program.
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9. How do I curtail?
When an emergency event or test is called you will be asked to reduce electricity demand or run your on site generator, if applicable. Although every facility is unique there are some common areas, systems and/or processes that can be manipulated to achieve curtailment. CLICK HERE to review a more detailed explanation.
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10. How do I know if my facility qualifies?
Whether you qualify for the substantial rewards of ECS' Program depends on a number of factors that can best be assessed by one of our trained specialists.
CLICK HERE to determine your eligibility and expected dollar amount. Remember, It Doesn't Hurt to Find Out!
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11. Is ECS affiliated with my electric utility?
NO. ECS is a private company independent of any and all utilities. We are not a spin-off or splinter company of any electricity supplier nor are we a state agency. We administer demand response programs for the benefit of the utility.
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12. Can I participate in this program directly with my utility?
Yes, but the program has been set up to incentivize you to enroll with a provider like ECS rather than the utility: First, the gross $$$ available under the utility administered program is less than with a company like ECS. Secondly, you will face financial penalties under the utility version of the program if you fail to perform. There are numerous other reasons as well, but suffice it to say that California has had general demand response programs for a long time with very limited success – this is the very reason why ECS has been allowed to enter the market – because we are a demand response provider first, unlike the utility which is a utility first, delivering electric, and a demand response administrator second.
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