Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

If PeakChoice is a voluntary program, why are penalties assessed?

April 26, 2017assessed peakchoice penalties program Voluntary

0

Posted

If PeakChoice is a voluntary program, why are penalties assessed?

1 Answer

0

Posted

PeakChoice is a voluntary demand response program with two levels of participation—PeakChoice Committed and PeakChoice Best Effort. There are no penalties for Best Effort participants. Companies that select the Committed option receive a guaranteed monthly payment for agreeing to always respond in the event they are called on to reduce their demand. These commitments are used for planning purposes and factor into PG&E planning and electricity demand analysis. So if the commitments are not met, there could be a shortage in supply for all. If a PeakChoice Committed business is not able to fulfill its commitment, penalties are assessed to compensate for the higher priced electricity that had to be purchased to bring supply up to meet demand.