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Demand Exchange Wins Top Honor BPA's Demand Exchange Program (DEMX) earned the 2001 Demand Response Achievement Award given at the Peak Load Management Alliance (PLMA) Conference in November 2001. The PLMA is an alliance of electricity suppliers, load shedding systems manufacturers, consultants, research groups and trade associations which promote the concept of reducing electricity demand in response to pricing signals in the marketplace. John Hairston, who manages the DEMX for the BPA Power Business Line Energy Efficiency group, accepted the award (See photo below). "We've found that customers like having access to the electricity market and are pleased to help in the management of the Northwest power supply situation," said Hairston. "The DEMX is an important element in the portfolio of options utilized by BPA traders and schedulers when managing system resources." The objective of the DEMX is to balance the power purchase price risk with options to meet the demands for power. DEMX quickly and cost effectively facilitates voluntary peak load reductions using the Internet. BPA posts an offer to purchase curtailment when the wholesale market reaches a specified trigger level. The energy user goes to a website to evaluate the offer and can submit a pledge if desired. Apogee Interactive, a leading provider of Internet solutions, online courses and content, and consulting to the energy industry operates the peak load reduction trading platform for BPA. In August of 1999, perceptions and behavior towards power purchasing and the related function of managing the load side of the load-resource balance equation fundamentally changed. These fundamental changes were caused by dramatic swings in the market price of power. In August 2000, Daishowa America, through the DEMX, sold curtailed power back to BPA. BPA used the power to enhance system reliability during a weather/unit failure system event. The customer made a nice profit, and more importantly, BPA proved it could mitigate its market exposure as well increase the reliability of the system through the utilization of the Demand Exchange program. This August marked the one-year anniversary of actual operations for the DEMX. As a result of it's success, utilities such as Snohomish PUD, PacifiCorp, and Sacramento Municipal Utility District all have began to run voluntary curtailment programs.