A first-of-its-kind assessment of demand response and advanced metering by the Federal Energy Regulatory Commission (FERC) found that America’s electric cooperative network leads the electric utility industry in deploying advanced, energy saving automatic meter technology. “The estimate of market penetration of advanced metering is highest among rural electric cooperatives at about 13 percent,” according to the FERC report.

The recently completed survey and report further highlights the progressive, technologically advanced approach to service taken by electric cooperatives. In July the Commission heard National Rural Electric Cooperative Association (NRECA) Regulatory Council Jay Morrison testify that electric cooperatives are strong supporters of demand response. “Nationwide, cooperatives can control approximately 6% of their peak load through demand response programs,” Morrison stated. This statistic is particularly noteworthy when considered in the broader context of load control; while cooperatives serve only about 10% of the country’s total load, their combined residential demand response resources equal approximately 80% of the residential demand response capacity of all investor owned utilities.

Demand response is a critical cost and risk management tool for cooperatives and is an important part of cooperatives’ strategy for providing their member-owners with stable and affordable electric rates. As member-owned and member-governed private companies, the very foundation and primary goal of electric cooperatives is to provide reliable energy at the lowest possible cost – not to maximize revenues or profits. It is this lack of profit motive that frees the electric cooperative to make consumer oriented load control decisions that help ensure the reliable delivery of power at an affordable rate.