The Commonwealth has joined with EnergyConnect, Inc., a third-party energy consultant, in a contract to reduce pressure on Virginia's electricity grid by employing a demand-responsive system.
The system will focus on reducing power use at Commonwealth facilities such as the University, and EnergyConnect will provide payments to state agencies to encourage them to participate in the program, Gov. Tim Kaine's spokesperson Gordon Hickey said.
"Payments for this electrical demand curtailment will be made directly to the participating organization and has the potential of exceeding $10 million per year in payments to state agencies," Hickey said. "This will provide an additional funding source for agencies in these challenging financial times."
According to Hickey, the new system will be especially useful on hot summer days and in the event of an emergency.
"A Curtailment Services Provider, such as EnergyConnect, works with the electric utility and the Regional Transmission Organization," he said. "Reducing the load helps the grid by making more electricity available to homeowners and reduces the need for electric utilities to start additional generating units."
According to George Barnes, EnergyConnect director of business development for the Mid-Atlantic region, the cooperation between EnergyConnect, the Commonwealth and local power companies will reduce energy use because of its demand-responsive technology, noting that EnergyConnect will work as a "middle man" between the larger energy providers for the Northeast and local energy distributors such as Dominion Virginia Power to achieve a more efficient energy distribution.
"If it is 105 degrees in Charlottesville, the demand is extremely high and that demand puts stress on the power grid, especially when Dominion's peak supply is 16,000 megawatts and its peak demand is 19,000 megawatts, which forces them to buy other power sources to meet the demand," Barnes said.
Dominion Virginia Power spokesperson Jim Norvelle said Dominion considers the contract to be very good news for the Commonwealth.
"Anything that can occur to reduce peak demands is a positive for Virginia and for Dominion," he said. "Our obligation to our 2.3 million customers is to be there when they turn on the light switch in the hottest days of the summer and coldest days of the winter -- this is a way to meet that peak demand."
Though Commonwealth citizens may not see immediate results from the contract, the long-term effects will be very beneficial. According to Hickey and Norvelle, the long-term benefits will include reducing the need to build additional power plants and distribution lines.
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