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Sustainability and Energy Glossary

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21 energywatch-inc.com / 212.616.5100 / 1261 Broadway, Suite 510 New York, NY 10001 Demand indicator A demand indicator represents the amount of energy-consuming units for which energy inputs are required. Demand interval A demand interval is the time period in which the flow & consumption of electricity is measured (typically in 15-, 30-, or 60-minute increments). Also, this represents the data intervals that meters can capture. Demand response programs Demand response programs are incentive-based programs, run by the utility, that encourage electric customers to temporarily reduce their demand for power at given times in exchange for a lower electricity bill. In some demand response programs, electric system operators directly reduce customers' load, but in others, customers retain control over their demand. For these customer-controlled reductions, customers often participate in actions such as curtailing load, operating onsite generation, altering operational patterns, or shifting electricity use to another time period. Demand response programs are just one type of demand-side management, which also covers more broad programs such as the promotion of energy-efficient equipment in residential and commercial sectors. Related content: The Smart Grid and Demand Response Programs Demand-side management (DSM) Demand-side management is an action by the utility that reduces or curtails energy- intensive equipment or processes. DSM is often used to reduce customer load during peak demand times and/or in times where there is supply constraint. DSM includes programs that are focused and immediate such as the brief curtailment of energy- intensive processes used by a utility's most demanding industrial customers, and programs that are broad and less immediate, such as the promotion of energy- efficient equipment in residential and commercial sectors (similar to above). Demand-side management costs These are the costs incurred by the utility to achieve the capacity and energy savings from their Demand-Side Management programs. This does not include costs

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