The mitigating effect of strategic behavior on the net benefits of a direct load control program

- Examine multifaceted impacts of a program intended to reduce peak consumption
- Use smart meter, air conditioner data and two-breakpoint demand model
- Results suggest off-peak increases in consumption offset on 41% of peak reductions.

Demand response is an important tool for utilities to manage load during peak periods. While the effects of demand response programs on peak load reductions are well studied and intuitive, assessments typically fail to recognize the potential for off-peak behavioral responses that may mitigate the total benefits of the program. Using smart meter consumption data on residential air conditioning units enrolled in a direct load control program, this paper examines the changes in consumption prior to and after curtailment events. The results suggest substantial increases in off-peak consumption, which reduce energy, monetary, and environmental benefits of the program by over 40%.