PECO PECO Energy Efficiency & Demand Response 1 — Questions and Answers
Question 1: What is PECO's primary demand response program that asks large commercial and industrial customers to voluntarily reduce load during peak grid stress periods?
- PJM Emergency Load Response Program (ELRP) (Correct answer)
- PECO Residential Time-of-Use Plan
- Pennsylvania Smart Grid Initiative
- Federal Peak Shaving Mandate
Correct answer: PJM Emergency Load Response Program (ELRP)
Large PECO customers can participate in PJM's Emergency Load Response Program, receiving financial incentives for curtailing usage when the regional grid is under stress.
Question 2: Which federal act requires PECO and other investor-owned utilities to offer energy efficiency programs and report results to state regulators?
- Public Utility Regulatory Policies Act (PURPA) (Correct answer)
- Clean Air Act
- National Energy Policy Act of 1992
- Federal Power Act
Correct answer: Public Utility Regulatory Policies Act (PURPA)
PURPA requires utilities to offer energy conservation programs and consider cost-effective efficiency measures as alternatives to new generation capacity.
Question 3: PECO's Act 129 energy efficiency programs in Pennsylvania are designed to achieve what primary regulatory goal?
- Reduce electric consumption and peak demand by mandated percentage targets set by the PUC (Correct answer)
- Increase natural gas usage as a substitute for electricity
- Expand the number of competitive suppliers in the PECO territory
- Lower distribution line losses to below 1% statewide
Correct answer: Reduce electric consumption and peak demand by mandated percentage targets set by the PUC
Act 129 of 2008 requires Pennsylvania electric distribution companies like PECO to meet specific consumption and peak demand reduction targets approved by the PUC.
Question 4: A PECO customer installs a smart thermostat that automatically adjusts temperature settings during demand response events. What category of resource does this represent?
- Demand-side management (DSM) resource (Correct answer)
- Distributed generation asset
- Transmission infrastructure
- Base-load generation unit
Correct answer: Demand-side management (DSM) resource
Smart thermostats participating in demand response events are demand-side management resources because they reduce load rather than add supply.
Question 5: What is the efficiency advantage of LED lighting over incandescent bulbs that makes it a core recommendation in PECO energy audits?
- LEDs use up to 75% less energy and last up to 25 times longer than incandescent bulbs (Correct answer)
- LEDs produce no heat and are safe to use near flammable materials without precaution
- LEDs operate on DC power and require no electrical conversion
- LEDs are exempt from Pennsylvania sales tax unlike incandescent bulbs
Correct answer: LEDs use up to 75% less energy and last up to 25 times longer than incandescent bulbs
LED technology converts most input energy into light rather than heat, achieving roughly 75% energy savings and dramatically longer lifespan compared to incandescent bulbs.
Question 6: In PECO's service territory, what is the typical metric used to measure the cost-effectiveness of an energy efficiency program?
- Total Resource Cost (TRC) test (Correct answer)
- Payback period in years only
- Customer Satisfaction Score (CSAT)
- Carbon offset credits generated
Correct answer: Total Resource Cost (TRC) test
The Total Resource Cost test compares the full costs of an efficiency program to the benefits (avoided generation, transmission, and distribution costs) to determine if it is cost-effective.
What is PECO's primary demand response program that asks large commercial and industrial customers to voluntarily reduce load during peak grid stress periods?