Panel discussion explores growing role of demand response in the Northwest

At August's Council meeting, leaders from Seattle City Light, Puget Sound Energy, and Opower presented on their strategies to bolster demand response in the Pacific Northwest in upcoming years (read presentation | watch video).

The Council's past power plans have identified demand response as an important resource for the Northwest's electricity grid. The 2021 Power Plan recommended the region acquire demand response that is low cost, frequently deployable, and with minimal customer impact. Two types were identified and provided specific targets - 200 MW of Residential Time-of-Use and 520 MW of Demand Voltage Reduction. In the draft Ninth Power Plan, the proposed resource strategy includes 590 MW of demand response to be added by 2032.

For the past several years, Power Division staff have worked with members of the Demand Response Advisory Committee to conduct a regional survey of utilities' demand response efforts and progress.

Utilities across the four-state region reported progress via these surveys, called demand-response round-ups, which found that the region has collectively acquired over 800 MW in peak demand savings capacity as of 2025. Primary drivers for expanding demand response in the next decade include integrated resource plans as well as the Clean Energy Implementation Plans required under Washington state's Clean Energy Transformation Act.

Seattle City Light highlights emerging role for demand response

Deputy General Manager Dennis McLerran cited a series of benefits demand response has for Seattle City Light as well as to their customers. For the utility, that includes price stabilization, cost avoidance, renewable integration, emissions reductions, grid reliability and resource adequacy, among others. On the customer side, it can reduce energy bills and foster greater engagement and education.

The utility recently launched its first time-of-use program for residential customers, with three pricing periods: peak, mid-peak, and off-peak. Electricity costs more during peak periods (5-9 pm), but less during other times. They're planning to expand TOU to small and medium-business customers soon.

Looking ahead, City Light is planning for a demand response portfolio that includes manual/behavior change actions, virtual power plants, and price-based mechanisms.

"Reliability and resilience are extremely important to us and to our customers," McLerran said. "For customers, shifting usage can lead directly to lower bills. That's increasingly something we're all hearing about, is affordability and what this means to individual customers and their expenses on a monthly basis."

City Light's analysis weighs the frequency of deployment, event duration, and customer impacts. The utility plans to finish its assessment of 2028-2029 later this year, and will set an acquisition target based on that analysis. He provided a list of the 20 products City Light is evaluating for 2028-29:

Puget Sound Energy incorporates demand response in clean energy plans

Josh Jacobs, Vice President of Clean Energy Strategy and Planning, spoke to how PSE is adding demand response to its portfolio.

PSE installed a virtual power plant a few years ago. The utility now has over 100 MW of demand response capacity, and over 600,000 customers participating in five different programs. In August, when prices topped $150/MWh in the day-ahead market, it triggered the first deployment of PSE's demand response programs for the summer, Jacobs said.

As a dual-fuel gas and electric utility, PSE is now doing long-term planning by considering gas and electric as an integrated system and embedding customer-side-of-the-meter programs into this planning, in accordance with a new Washington state law. It plans to file its first Integrated System Plan with regulators in spring 2027. The reference case for this plan sees 210 MW of new demand response products added by 2031.

"Historically, Puget looked at demand response programs for the last 20-plus years and we could never get them to pencil out, because the supply side was so cheap," Jacobs said. "Fast forward to where we are today, and that's not really the case. We see a lot of potential for demand response and customer-side-of-the-meter programs. What makes me optimistic? It's the adoption of our customers and participation in the programs."

Opower centers people in demand response

Serj Berelson, West Director of Regulatory Affairs and Market Development for Opower, spoke to how utilities can achieve more benefits from demand response by empowering customers as partners. Opower is part of a growing cohort of companies that offer demand response products to electric utilities.

The traditional model has focused on peak reduction and demand flexibility through device-based products and remote dispatch. While these deliver important benefits, Opower focuses on behavioral-based approaches that can further grow demand response efforts' impact.

For example, a behavioral program can deliver personalized insights and tailored tips to reduce energy use during a peak day, as well as comparisons and measurable effects. Customers enrolled in these programs receive a welcome to introduce it before a peak demand season. Utilities then alert customers before a peak event through emails, text messages, or phone calls to prompt action. Afterwards, another communication is sent to explain the outcome and reinforce the program's impact.

Berelson said these programs are free to participate in, don't require device purchase, and renters can participate. Additionally, customers control the end uses and decide how they want to lower their energy use voluntarily.

He said these behavioral programs can be one component of a broader demand response portfolio that includes fast response products, deep dispatch, and "always on" savings through conservation and rates.

"If we only focus on devices, we're leaving people and peak demand savings behind," Berelson said. "By centering the consumer and the household, we can really drive increased value."