Controlling peak demand and being energy efficient in general provide economic, environmental and societal benefits, as follows.
Economic benefits. Current electric costs are partially driven by past years' annual peak demands. So, controlling peak demand today helps control future system‑wide costs. High peak demand affects the wholesale price of electricity and can require higher costs associated with investments in transmission lines and generators to keep Connecticut's electric system reliable.
Environmental benefits. Many peak generating plants in service today are older, less efficient units that produce more harmful emissions. So, reducing peak demand can help improve air quality by requiring these plants to run less frequently.
Societal benefits. When the electric system becomes strained by high demand, Connecticut becomes vulnerable to power disruptions. These disruptions are commonly referred to as rolling brownouts (i.e., voltage reductions) and rolling blackouts (i.e., shutting off power for up to two hours) in varying sections of the state.
These benefits can be summarized as follows: “Taking actions to reduce peak demand can help control overall costs for everyone, lower harmful emissions and reduce the strain on Connecticut's electric system to maintain reliability.”