Bill credits are issued monthly based on the kilowatt (kW) capacity that customers agree to curtail and TEP's "market value capacity price" (MVCP).
TEP provides 30-minute notices prior to an interruption. TEP also offers the Interruptible Service Program to commercial customers for agreeing to electric service interruptions during times of high demand. The program provides quarterly bill credits to customers who agree to be notified by TEP during high demand events and asked to reduce their energy use according to an "energy reduction plan," which they design in collaboration with TEP. Tuscon Electric Power's (TEP) Smart Demand Response (SmartDR) Program offers large commercial and industrial customers the opportunity to reduce energy costs by reducing energy use at times of high demand. Capacity and energy payments of $40 per kW and $0.09 per kWh, respectively, are paid to customers for reducing their energy consumption. Events last anywhere from 1–5 hours on a maximum of three consecutive days. The program runs from June 1–September 30, and events can be called anytime between 4 and 9 p.m. APS provides 60 minutes notice prior to an interruption. The program is offered through CPower and allows customers to earn revenue for being available to curtail load on short notice when the grid is stressed.
APS also offers the time-of-week price plan demand response program to its commercial and industrial customers. These rates provide utility bill savings for customers who can shift electricity use to off-peak hours, particularly during the summer. Both APS and SRP offer time-of-use rates for commercial customers.
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