With the start of the new year and the current state of the economy, many companies are exploring new ways to reduce costs. Consider this: A demand response program allows companies to save as much as 15 percent of their total energy costs. By agreeing to conserve energy through cutting back on air conditioning, chillers and nonessential lighting, back-up generators and power-intensive processes, your business can qualify for cash incentives. This mutually beneficial relationship allows companies to earn money while reducing the burden on the power grid.

Demand response programs provide companies with flexibility—the amount of energy the business chooses to reduce is up to the discretion of the business, which allows the business to make decisions on how many incentives they want to earn juxtaposed with the needed energy use. The added benefit of demand response programs is that they allow the business to receive a continuous revenue stream throughout the year.

Eaton is currently participating in a demand response program with great success. The Eaton Electrical Group headquarters in Pittsburgh, PA is reducing its grid power load by 1MW (the current building use is 1.2MW). To do this, the Electrical Group headquarters uses a combination of Eaton’s Pow-R-Command Lighting Control, HVAC-based temperature control, and Stand-by Emergency Generators. By making these changes, Eaton’s Electrical Group’s total “new-found income” is $47,535 per MW.

The benefits of participating in a demand response program correlate with many companies goals for 2009:

• Financial: improving the bottom line with year-round incentive payments
• Reliability: reducing unexpected outages
• Environmental: cutting down power consumption is the best way of preserving power

To learn more about demand response programs, click here.