Demand Response Program

Through the support and participation of its Municipal Participants, the Northern Municipal Power Agency offers a demand response program administered through its operating agent Minnkota, that is among the best in the electric utility industry.

The demand response program is voluntary for consumers who allow NMPA to turn off, by remote control, electric heaters and other interruptible loads in exchange for a discounted retail electric rate. This capability enables the Joint System to more effectively manage its existing power resources and avoid the need to acquire new electric generating resources that would carry a very high cost.

The program is popular with about 50,000 consumers participating. Loads most commonly involved in the program are dual fuel heating systems, water heaters, storage heaters and commercial loads with backup generators. When necessary, nearly 80 megawatts in the summer and 350 megawatts in the winter can be interrupted from Minnkota’s control center in Grand Forks.

A substantial amount of NMPA participants commercial and industrial loads benefit from the program, along with residential off-peak heat and water heater customers.

In addition to the ability to curtail off-peak loads, the Joint System can also buy power from other utilities and the Midcontinent Independent System Operator (MISO) wholesale power market during many of its peak load periods. When the price for electricity on the market is affordable, the additional power is purchased and no demand response measures are used. But when market prices are high, off-peak loads are controlled.

Having a highly effective demand response program has been valuable to NMPA because it has provided a worthwhile alternative to arranging for future power supply requirements. Demand response is a very favorable program for consumers because it has enabled thousands of them to enjoy reliable electric energy at rates that are both affordable and stable. Even with increased retail electric power costs, the price of off-peak heating remains competitive with alternate heating fuels such as fuel oil and propane.