Consumers sign up with a demand response provider and agree to reduce energy consumption at certain times determined by the grid operator, often during peak winter or summer periods of demand.

Consumers who have signed up for demand response receive recurring payments for simply being on call as well as for the actual energy reduction during demand response times.

Commercial, institutional, industrial, and residential consumers are able to participate depending on the state and grid operator program.

Consumers can reduce energy use with a broad range of equipment, such as lighting, manufacturing processes, heating and cooling equipment, battery chargers, pumps, and industrial freezers. Demand response providers work with consumers to create a reduction strategy that maximizes value while having minimum impact on business operations.

Most consumers are able to shift energy intensive processes by a few hours such that business is not negatively impacted.