Demand Side Management
The cheapest kilowatt is the one you don't use — or the one you get paid to reduce.
Demand Side Management (aka load curtailment) helps commercial businesses reduce energy costs not just through better contracts, but through smarter consumption — and in some cases, through programs that pay you to reduce load when the grid needs it most.
What This Service Is
Demand Side Management (DSM) covers strategies that reduce, shift, or optimize when and how much energy your facility uses. It's the complement to procurement — once you've secured a good rate, DSM is how you reduce the number of units you're paying that rate on.
Demand Response: Programs — primarily through ERCOT and retail suppliers — that compensate commercial customers for voluntarily reducing their electricity consumption during periods of grid stress or peak demand. If your facility can curtail load during a demand response event, you can get paid for that flexibility.
Load Management & Efficiency Consulting: Understanding your load profile well enough to identify opportunities to shift usage away from peak periods, reduce demand charges, or identify equipment or operational patterns driving unnecessary cost.
What's Changed in the ERCOT Market
It's worth noting that the ERCOT grid has undergone a significant shift in recent years. The growth of solar generation has moved the historically "tight hours" — when wholesale prices spike — from the traditional 3–6 PM weekday window to the 7–9 PM range, when solar output drops and natural gas generation needs to ramp up quickly. This changes the calculus on when demand flexibility is most valuable, and we stay current on those dynamics so our clients don't have to.
What Alden Brings to the Table
Demand response is an area where the devil is in the details — which programs are worth enrolling in, what the curtailment obligations look like in practice, and whether the payments justify any operational disruption. We'll give you an honest assessment before you commit.
We also look at demand side opportunities as part of our overall energy strategy for each client. Your load profile affects what contract structure fits your business, and understanding your usage patterns is part of how we find savings beyond just the rate itself.
Frequently Asked Questions
What kinds of businesses benefit most from demand response?
Businesses with flexible load — manufacturing operations, cold storage, commercial real estate with HVAC flexibility, data centers, and similar facilities. If you have processes that can be curtailed or shifted for 2–4 hours without significant operational impact, demand response is worth evaluating.
Is demand response disruptive?
It depends on your operation and the program structure. Some programs have very few actual curtailment events per year. We'll walk you through what participation actually looks like before any additional steps are taken.
How do demand charges work and can we reduce them?
Demand charges are based on your peak usage during a billing period — often a 15- or 30-minute interval. Reducing that peak, even briefly, can significantly lower your bill. We can review your interval data and identify whether demand charge reduction is a realistic opportunity for your facility. Under most circumstances across Texas, TDSP demand charges run between $9–$12 per kW, so even modest peak reductions add up.
Does this require capital investment?
Not necessarily. Some demand response enrollment is purely operational — agreeing to curtail certain loads when called upon. Deeper efficiency projects may involve capital, but we'll scope that separately and only recommend it when the economics make sense.
