Residential and Small Commercial Load Management/Demand Conservation Program Evaluation Report

The Residential and Small Commercial Load Management/Demand Conservation program, operated by Louisville Gas and Electric Company and Kentucky Utilities Company, has been effective in reducing energy demand among its customers. The program, which began in 2001, allows customers to reduce their short-term energy demand during peak summer periods by cycling off air conditioners, pool pumps, water heaters, and heat pumps. The evaluation report, conducted by Tetra Tech, highlights the program's substantial demand savings and high participant satisfaction.

Key Takeaways:

  • The Residential and Small Commercial Load Management/Demand Conservation program has been operating effectively since 2001, with a focus on maintaining the current level of enrollments and ceasing future enrollments of water heater and pool pumps.
  • The program resulted in substantial demand savings in 2017, with an estimated 54,546 kW of savings during the July 13, 2017 demand conservation event.
  • The program has high participant satisfaction, with recent enrollees speaking highly of the program in terms of enrollment, device installation, event participation, and the incentive payment process.
  • The program is recommended to continue its focus on maintaining enrollment levels and improving customer experiences, with opportunities for future focus on differentiation, governance, and awareness.
  • The evaluation found that the July 13, 2017 event resulted in savings of 54,546 kW, with a control group used to develop baseline estimates.
  • According to the report, the program is expected to operate smoothly, with well-defined responsibilities understood and practiced by program staff and the implementer.
  • The program's customer experiences and satisfaction related to maintaining enrollment levels are considered on-track to maintain participation levels.
  • The evaluation identified opportunities for future focus, including differentiation, governance, and awareness, to ensure the program's continued effectiveness.

Statistics:

  • 196,075 air conditioners and heat pumps took part in the demand conservation event on July 13, 2017.
  • The program resulted in estimated savings of 54,546 kW during the July 13, 2017 demand conservation event.
  • Savings were lower than LG&E and KU's planning assumption due to below typical peak temperatures during the event, but similar to the planning assumption when estimating program performance at higher temperatures.
  • The average hourly impact was derived from the savings calculated for the middle two hours of the July 13, 2017 four-hour event.
  • 15,600 program participants had sub-hourly interval meter data, which was used to develop the estimate of program performance.
  • The July 13, 2017 event resulted in a single family household savings of 52,445 kW.

Sources:

  • Case No. 2025-00045 Attachment 3 to Response to JI-2 Question No. 33(a) Page 8 of 106
  • Isaacson, ix Residential and Small Commercial DLC Program Evaluation FINAL. July 30, 2018