TeachMeFinance.com - explain Actual peak reduction
Actual peak reduction The term 'Actual peak reduction' as it applies to the area of energy can be defined as ' The actual reduction in annual peak load (measured in kilowatts) achieved by customers that participate in a utility demand-side management (DSM) program. It reflects the changes in the demand for electricity resulting from a utility DSM program that is in effect at the same time the utility experiences its annual peak load, as opposed to the installed peak load reduction capability (i.e., potential peak reduction). It should account for the regular cycling of energy efficient units during the period of annual peak load'.
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