June 16, 2026
Save Money, Help Your Community, and Make Positive Choices for the Environment
As summer approaches, hot days can raise your electric bill and create strain on the electric grid. Ahead of summer heat surges, I checked back in with OEC’s Senior Attorney for Clean Energy about programs utilities can run to reduce grid demand and reward you for your participation.
What is a Demand Response Program?
A demand response program is a way to keep the lights on when the electrical grid cannot handle all the demand. The electrical grid is like a highway and road system. Just as the highway can have traffic jams, the electrical grid can, too. The utility has ways to reroute traffic on its own, but sometimes the grid can get so jammed that it can overload the system. That can lead to serious blackouts. A demand response program works like a traffic alert system that tells people to delay or stagger getting on the roads so that it does not have to shut down.
What utilities in Ohio currently offer demand response programs, and who is eligible to join?
A number of utilities across the state offer these programs, but unfortunately, most do not. The Public Utilities Commission of Ohio does not require the big utilities to run these types of programs. Some utilities that do are electric co-ops (like South Central Power Company), AEP Ohio, the City of Westerville, and the City of Wadsworth. Each program is slightly different depending on the utility, but they are usually open to all customers interested in enrolling and may require a smart thermostat. Some of the programs also reimburse the cost of a smart thermostat.
How does it work?
When the utility sees that its electric grid could get overloaded, it will reach out to customers who signed up for the program. You usually receive a notification through your smart thermostat company, which says they would like to turn up or down your thermostat a couple of degrees. When you receive the notification, you can choose to deny the request or do nothing and let the utility adjust your thermostat. If you feel uncomfortable, you can always go back to your thermostat and return to your desired temperature. The program is completely optional, and you remain in control of your thermostat.
How do the temperature changes happen, and what does agreeing to a temperature change do?
If you agree to turn your thermostat up or down, the thermostat company will move it a couple of degrees for the duration of the traffic jam on the grid. For example, AEP Ohio’s program will adjust your thermostat as much as three degrees for as long as four hours. It can be less than three degrees or shorter than four hours, but it will never be more. By accepting these temperature changes, you will save on energy costs, help your community, and decrease energy consumption.
Who controls my thermostat?
You do! Your utility will ask you to help prevent blackouts, but you have complete control to override this request at any time.
It’s similar to when an airline asks you to wait for the next flight in exchange for extra airline miles or a voucher. If you say no, you still get to take the flight you planned, but you won’t get the extra incentive.
How can it save me money?
Demand response gives incentives to the participating customers and saves all customers money by reducing the utility’s costs to operate the electric grid. For example, AEP Ohio’s program offers participating customers three savings opportunities: (1) $50 for signing up, (2) $25 a year for agreeing to change your home’s temperature when AEP Ohio asks, and (3) using a smart thermostat can help save money by allowing you to set the device to turn up or down automatically when you are not home.
How can it help my community?
Reducing your energy consumption during these peaks can prevent blackouts and brownouts, which can leave entire communities without power for extended periods of time. These blackouts and brownouts can affect underserved communities more often due to older, less effective infrastructure. The OEC found that FirstEnergy’s service territory has older equipment with lower voltage levels in disadvantaged communities. So, this isn’t just a cost-saving advantage; it is also an equity-based program.
Deep Dive
I am a renter; how can I participate?
A renter who pays their electricity bill can participate in the program the same as anyone else. They will just need to take the extra step of getting their landlord’s approval to change their existing thermostat. Also, be sure to save the original thermostat so you can reinstall it and take your smart thermostat with you to your new home.
I am a homeowner; what benefits would I receive, and how can I participate?
Go to your utility’s program web page and follow the steps to sign up. Most thermostats are easy to install without professional assistance. However, any electrician should be able to install a thermostat for you if you would like some help. Here are the web pages for some of the available programs:
I am a landlord or rental agency. Why should I consider upgrading to smart thermostats in my units?
As electricity prices continue to rise, amenities like smart thermostats can become increasingly attractive to potential renters. Offering smart thermostats is an easy and cost-effective way to provide additional benefits to your tenants.
What does the utility get out of this?
The utility benefits from avoiding blackouts, which keeps customers and regulators happy, and from lowered operating costs. These cost savings are mostly passed on to consumers. However, regulators or customer owners can also allow the utility to keep some of these cost savings.
