Demand response programs explained
In 2024, U.S. utilities told EIA that 10,950,828 customers were enrolled in demand response programs, and that the programs cut 12,322 MW at the utilities’ own peak hours. The programs could have cut 31,491 MW if every one had been called.
What demand response means
EIA describes demand response programs as “incentive-based programs that encourage electric power customers to temporarily reduce their demand for power at certain times in exchange for a reduction in their electricity bills”. The EIA-861 form gives a shorter test: a temporary cut “in response to a signal from the grid operator or market conditions”.
The idea is simple. The grid must be built for the few hours when everyone wants power at once. If some customers use less in those hours, the utility needs fewer peaking plants and the price spike is smaller. The customer gets a bill credit or a lower rate for helping.
Demand response is not the same as energy efficiency. EIA files both under demand-side management, but efficiency cuts use all year, while demand response cuts use for a few hours on a few days. For the efficiency side see the energy audit and weatherization guide.
Four ways it shows up for a household
The EIA form groups what utilities report into a few types. A home customer will meet one of the first three.
| Type | What EIA says | Who usually gets it |
|---|---|---|
| Direct load control | The sponsor remotely shuts down or cycles equipment such as an air conditioner or water heater on short notice. | Homes and small businesses |
| Time of use | Customers pay different prices at different times of the day, on a fixed schedule. | Homes |
| Critical peak pricing | A pre-specified high price for a limited number of days or hours. | Homes and businesses |
| Critical peak rebate | A rebate for cutting use on called event days, measured against a baseline. | Homes and businesses |
| Curtailment by large users | Examples in the EIA form: turning on backup generators or shutting down industrial processes. | Factories and large buildings |
Source: EIA-861 2024 Instructions (EIA, Form EIA-861), Schedule 6 Part B and Schedule 6 Part C definitions; EIA Energy Glossary, eia.gov/tools/glossary. Retrieved 2026-10-02. CSV, 5 rows.
Two of the price types come with a warning in the EIA text. Critical peak pricing events are “often limited to 10-15 per year”, and the form says prices “can be 3-10 times as much” during those few hours. Read the event limit in any plan before you sign. For the everyday version, see time-of-use plans explained.
How much there is, state by state
Utilities reported enrolled customers in 49 of the 51 places in the file (50 states and DC), across 334 utility reports. Minnesota alone has 1,274,850 enrolled customers, 12% of the national count. Minnesota also leads on actual peak savings with 1,197 MW.
Enrollment is a count of accounts. It does not say how many of them acted on any given day. The better measure of effect is the actual peak savings, which the form defines as the “demand reduction actually achieved by demand response activities” measured “at the time of the company's annual system peak hour”.
United States, Actual peak demand savings from demand response, 2024: EIA retail sales.
CSV| State | Customers enrolled (all sectors) | Home customers per 100 home accounts | Potential peak savings, MW | Actual peak savings, MW |
|---|---|---|---|---|
| Minnesota | 1,274,850 | 48.0 | 2,008.8 | 1,196.8 |
| New York | 182,373 | 2.3 | 1,070.4 | 881.5 |
| Texas | 779,123 | 6.0 | 1,049.8 | 795.4 |
| Ohio | 123,318 | 2.4 | 667.8 | 667.6 |
| Tennessee | 1,286 | 0.0 | 991.0 | 620.0 |
| Colorado | 228,721 | 8.9 | 794.8 | 601.1 |
| California | 624,811 | 4.2 | 1,060.7 | 567.8 |
| Nebraska | 81,480 | 7.0 | 856.5 | 514.4 |
| North Carolina | 696,361 | 13.5 | 1,858.3 | 455.8 |
| Arizona | 181,623 | 5.7 | 555.3 | 445.0 |
Source: EIA-861 2024, Demand_Response (Schedule 6 Part B), summed by state; home accounts from EIA retail sales 2024. The table shows the ten states with the most actual peak savings. Retrieved 2026-10-02. CSV, 49 rows.
Home customers make up 97% of enrolled accounts nationally, equal to 7.5 per 100 home accounts. Among states, Delaware has the highest rate at 56.1 per 100 home accounts and Minnesota is next at 48.0. 2 states or DC reported no enrolled customers or no demand response row at all.
Potential against actual
Utilities reported 31,491 MW of potential peak savings and 12,322 MW of actual savings, so actual was 39% of potential. A gap is normal. Programs are sized for the worst day, and utilities do not call every program on every peak. The potential figure is a capacity, like the size of a pipe. The actual figure is what flowed.
The same numbers show an average of 1.13 kW of actual savings per enrolled customer (1,125 W), which is a small appliance, not a whole house. That fits direct load control of one air conditioner or one water heater, plus a few large industrial users with far bigger numbers.
What it costs the utility
Utilities reported $1,225 million in customer incentives and $362 million in other program costs for demand response in 2024. Dividing both by the actual peak savings gives about $129 per kW of cut. That is our arithmetic on EIA totals, with no adjustment for what each program also does in other hours, so treat it as a rough yardstick, not a price of a power plant.
Incentives are the part that reaches customers: bill credits, rebates and device payments. We cannot split that sum by customer type.
Questions to ask before you enroll
Ask for the program rules in writing, and look for the same few items every time: how many events a year, how long each lasts, whether you can override an event, how the credit is paid, and what happens to the credit if you opt out. For a device program, ask who owns the thermostat or switch and what happens when you move.
If you are behind on bills or worried about shutoffs, a demand response credit is not a substitute for assistance. Check your state help page and the shutoff rules.
What the data cannot tell you
EIA-861 has no per-program credit amounts, no event counts and no list of which plans are open in your area: no data. A utility’s own program page is the source for those. The file also counts a customer once per utility report, so a customer in two programs can appear twice.
Key facts and where they come from
| Fact | Value | Source | Date |
|---|---|---|---|
| Customers enrolled in demand response, U.S. | 10,950,828 | EIA-861 2024, Demand_Response | 2024 data |
| Home customers enrolled | 10,658,027 | EIA-861 2024, Demand_Response | 2024 data |
| Potential peak demand savings | 31,491 MW | EIA-861 2024, Demand_Response | 2024 data |
| Actual peak demand savings | 12,322 MW | EIA-861 2024, Demand_Response | 2024 data |
| Actual as a share of potential | 39% | Computed from the two lines above | 2024 data |
| Energy savings reported | 409,404 MWh | EIA-861 2024, Demand_Response | 2024 data |
| Customer incentives | $1,225 million | EIA-861 2024, Demand_Response | 2024 data |
| State with most enrolled customers | Minnesota, 1,274,850 | EIA-861 2024, Demand_Response | 2024 data |
| State with most actual peak savings | Minnesota, 1,197 MW | EIA-861 2024, Demand_Response | 2024 data |
| EIA definition of demand response programs | Incentive-based programs to cut demand at certain times for lower bills | EIA Energy Glossary, eia.gov/tools/glossary | retrieved 2026-10-02 |
| EIA-861 definition of critical peak pricing events | Often limited to 10-15 per year; prices can be 3-10 times as much | EIA-861 2024 Instructions (EIA, Form EIA-861) | 2024 form |
| EIA-861 definition of direct load control | Remote shut down or cycling of equipment on short notice | EIA-861 2024 Instructions (EIA, Form EIA-861) | 2024 form |
Related guides
Questions
What is demand response?
A program that pays or credits customers to cut power use for a short time when the grid is tight. EIA calls them incentive-based programs. In 2024 10,950,828 customers were enrolled (EIA-861).
How many megawatts do these programs cut?
Utilities reported 12,322 MW of actual peak savings in 2024, against 31,491 MW of potential.
Which state has the most customers enrolled?
Minnesota, with 1,274,850 enrolled customers in the 2024 file.
Is demand response the same as a time-of-use rate?
No. A time-of-use rate sets fixed prices by hour. Demand response asks for a cut on called days. EIA lists time-of-use and critical peak programs under dynamic pricing, a related file.
Can the utility turn off my air conditioner?
In a direct load control program, yes: EIA defines it as remotely shutting down or cycling equipment such as an air conditioner or water heater on short notice. Check the opt-out rules first.
How often are critical peak events called?
The EIA-861 form says event days are often limited to 10-15 per year. Your plan may differ, so read its terms.
What does a program cost per kW?
On the 2024 EIA totals, incentives plus other costs come to about $129 per kW of actual peak savings. That is our arithmetic, not a utility figure.
Where can I see what is offered at my address?
EIA-861 does not list plans by address: no data. Use your utility's site and your state commission's page, and read the 2024 totals here only as context.