Energy Management Program
At Orange County REMC we are developing new ways to help you reduce electric costs. We are offering a pilot program to our members that would allow the REMC to install a switch that can remotely operate both your electric water heater and central air conditioner or heat pump during times when demand for electricity is at its peak. An electric peak comes most often during a stretch of very hot or cold days as demand for electricity increases. During this time of increased use, Hoosier Energy, might be forced to purchase additional power on the volatile power market. Avoiding the need to purchase additional power will in turn keep your rates low. The information below will help you understand the program. If you would like to participate, fill out this form, and you will be contacted by an Orange County REMC customer service representative to walk you through the process.
Why do we control?
Demand is a measure of how much power is used at a given time. Turning off the power to an HVAC (heating, ventilation, and air conditioning) system or water heater reduces demand. The purpose of an EM (Energy Management) program is to prevent Orange County REMC from exceeding a predetermined amount of power consumption at any given time the system peak. Our wholesale electric rates are determined by the total amount of power we receive and by the combined affect of all member loads at the time of the system peak. Each time a new peak occurs, the demand charge on our power bill increases. Member bills are eventually affected by these demand charges because if REMC pays more for power, it is inevitable we have to increase rates to cover the cost.
Everyone can save.
Because peak demand has a large influence on energy rates, the EM program operates to prevent Orange County REMC from exceeding our system peak. Utilization of EM can also benefit Orange County REMC and the Hoosier Energy, our power supplier, by reducing or delaying the need for new construction (i.e. substations, larger conductor, power plants) therefore reducing costs for our members. Operation of the EM system can also help eliminate the need for rolling black outs during emergency load curtailment events.
How do we reduce demand?
The principle method of reducing demand a few days each month is through operation of an EM switch. FM radio signals sent from radio station WUME turn off power to water heaters and HVAC systems when a new system peak is likely. The switches are activated for a maxiumum of 6 to 12 minutes over a half hour, usually late afternoons in summer and the early mornings in winter on the hottest or coldest weekdays of the month. Tank type water heaters are capable of holding their heat for an extended period, so there is no inconvenience to the member. The circulating fan on the air conditioner or heat pump continues to operate during control periods keeping members comfortable. When fully operational, the EM system will result in considerable savings for REMC and our members.
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