P3. Smart Load Control and Grid-Friendly Appliances > Background

With the deregulation of the electric utility industry in California, operation of the grid will be increasingly pushed to the full margin of its capability. This leaves the system vulnerable to events outside its control such as loss of interstate transmission lines or voltage support. By safely operating the grid closer to its limits, ratepayers need not pay for large capital investments in capacity of the T&D infrastructure and large operating costs for spinning (standby) reserve generation capacity needed to ensure grid stability.

Concepts for simple, inexpensive control strategies for hot water heaters and refrigerators should be researched that minimize peak load impacts on the electric generation and transmission and distribution (T&D) systems. Reducing peak loads has benefits to all ratepayers by reducing the need for new T&D infrastructure, particularly where population growth is large.

Further, techniques should be developed to drop specific end-use loads for short periods, both during grid crises and upon restoration of power, to reduce the stress placed on the grid during these transient operations. Dropping loads during crises can reduce the overall load momentarily, helping stabilize the grid and prevent an outage. Similar benefits can be obtained during recovery from an outage.

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