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Demand Response Program

LADWP’s Demand Response (DR) is an incentive based, voluntary energy management program for businesses that helps reduce their utility bills during times of peak power demand, ensuring the continued reliability of power for Los Angeles.

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Save Money & Support Local Energy Reliability

Utilizing this energy management program has many benefits, including:

  • Saving money on utility bills    
  • Special offers on financial incentives (see below) 
  • Decreasing operating costs 
  • Increasing customer’s control over electric use 
  • Helping reduce chances of power outages 
  • Reducing the need for building new power infrastructure 
  • Increasing energy reliability 

Incentives are based on the energy curtailment capacity and number of events.

To receive the maximum program benefits submit the application by June 1. However, applications will be accepted through out the curtailment season.

Program Outline

LADWP will determine when a DR event is called based on peak demand for power and resource availability. Participating customers will be notified through email or telephone, and they will initiate their own DR curtailment procedure to achieve a predetermined amount of energy reduction (kW shed).  After signing up, businesses may request a complimentary consultation to review energy usage and areas of possible curtailment specific to their type of business.  Each DR participant controls, defines, and plans the curtailment for the DR event. The adjustment will relieve stress on the electric grid and ensure power reliability for all.

This energy management program is based on the following parameters:

  • A maximum of 12 DR events per season 
  • Limit of one DR event per day 
  • Maximum of 4 consecutive hour per event

To participate in the DR Program, businesses must meet following criteria:

  • Have an existing Building Energy Management System      
  • Be able to curtail load by 100 kilowatts (kW) or more for each DR event      
  • Be able to adjust operations to participate during the DR season – June 15 to October 15      
  • Be able to adjust operations between 1:00 p.m. and 6:00 p.m. PST for at least four hours      
  • Be able to participate with day-ahead or two hour advance notification

Program Documents


Financial Incentives

The Demand Response (DR) Program offers financial incentives for participation, including event and capacity.

Demand response business benefits Image


Event Incentive

Received based on the number of events and the amount of energy (kWh) reduced during the DR season ($0.25/kWh).

Capacity Incentive

Incentive is received based on committed kW curtailment capacity with a minimum 50% performance during the DR Events. If an event is not called during a given month, capacity incentives are guaranteed.

  • $8.00/kW monthly capacity payment during DR season, June 15- October 15, for day-ahead notification.
  • $12.00/kW monthly capacity payment during DR season, June 15- October 15, for 2-hour advance notification.

Other Benefits

Benefits of energy management to businesses are numerous and contribute to the reduction of greenhouse gas emissions and carbon footprint.


Adjustments made by customers during DR events may include:

  • Adjust global temperature set point (GTA)
  • Pre-cool the building envelope
  • Limit demand of electric equipment (i.e. chillers)
  • Duty cycle air-cooled package units (i.e. 10 min on/10 min off)
  • Reset static set point pressure controls
  • Dim or curtail selected lighting zones
  • Reduce variable fan speed (VSD/VFD)

Other adjustments can be made.  For a full list, contact [email protected]. Participants will always have the option to opt out of each DR Event. As part of the DR Program, participation is voluntary; however, the number of opt outs should not exceed two per DR season.

Program Participants

Since 2015, LADWP has offered the Demand Response program to commercial and industrial customers. Many took advantage of this offering and saved 3,044 MWh and about $4 million in incentives.

Some Demand Response Program participants include:

How Beneficial Was Demand Response to your organization
  • Ace Hotel
  • Anheuser-Busch
  • Constellation Place
  • Commonwealth Partners
  • Hines Global REIT Campus at Playa Vista
  • L.A. Community College District
  • L.A. Live
  • LAUSD Headquarters and Buildings
  • Paramount Pictures

How to apply

Customers may submit an application online, by mail or by fax.

This program shall at all times be subject to change or termination without notice.


By applying for an LADWP rebate and/or program, personal information provided may be subject to public disclosure by requesting parties, pursuant to the California Public Records Act.