Key concepts

Most of Curtailment's key concepts are either program-specific or event-specific. However, several concepts transcend all programs and events. These important concepts are listed here.

Participation in Events. Controls whether program enrollees can participate in a curtailment event. Some events may be declined, and some may not be declined. The ability to decline an event is set by the Program Administrator when creating programs and, to a lesser extent, by Program Operators when issuing events.

Default Committed Reductions. Represents the demand reduction values displayed on the User Notice window.

  • Events using the Baseline Minus Actual settlement method are initially populated by the default committed reduction values.

  • End-users can accept the default value as the committed reduction level or increase the default reduction level if allowed by the program rules. However, the user must commit at least as much as the minimum reduction (the reduction level that a program participant can commit to in an hourly block and still participate in the event).

Minimum Reduction. The minimum amount by which a participant must reduce their usage during the program. There are three parameters can influence the minimum reduction value of a voluntary or mandatory program:

  • A fixed kW amount across all customers (for example, 100 kW).

  • A fixed kW amount specific to each customer (for example, mandatory or voluntary default committed reduction).

  • A percentage of the customer's baseline (for example, 15% of the baseline).

    Note: When creating programs, the Administrator can select any combination for each program. If the Administrator chooses two or more parameters, Curtailment selects the maximum value and populates the User Notice kW reduction field with that value.

    Minimum reduction values are optional and do not have to be defined for a program.

Firm Demand. Programs with Firm Demand minus Actual or Baseline minus Firm Demand Settlement Methods do not use committed reduction values; Firm Demand levels are automatically populated as the targets.

Settlement Caps and Floors. Criteria used to determine dollar amounts that the energy provider will pay to a customer for reducing demand during a curtailment event. Settlement is handled differently depending on the specific method used.

When the settlement method is Baseline Minus Actual:

  • The settlement cap represents the maximum percentage the energy provider will pay to a customer for reducing demand beyond its committed reduction level. For example, if a customer commits to reduce 1000 kW and the cap is 120%, the utility will only compensate the customer for reduction up to 1200 kW even if the customer actually reduced 2000 kW. As a result, 800 kW would be a free reduction for the energy provider.

  • The settlement floor is the percentage of a customer's committed reduction level that the customer must reduce to in order to receive any compensation. For example, if a facility commits to reduce 1000 kW and the floor is 80%, the utility will only pay the facility if its reduction is 800 kW or greater. As a result, if the facility reduces 700 kW, it doesn't receive any compensation.

  • Caps and floors can be applied to both mandatory and voluntary events.

When the settlement method is Baseline Minus Firm Demand Level:

  • The settlement cap represents the maximum demand level at which the participating facility can operate in order to be compensated for the difference between the facility's baseline and its firm demand level commitment. For example, the settlement cap may be set at 115%, in which case the facility's demand may NOT go above 115% of the firm demand level in order to be compensated. If the actual demand value stays below 115% of the firm demand level, then the facility is compensated for the usage reduction calculated by the difference between the baseline and the firm demand values.

  • The settlement floor does not apply to this settlement method.

When the settlement method is Firm Demand Level Minus Actual:

  • Settlement caps and floors do not apply to this settlement method.