> Sizing transmission for the absolute yearly peak is not cost effective, so various schemes are used to reduce that peak, including efficiency improvements and demand response.
Nonetheless, voluntary curtailment of demand by consumers (for any objective) must be compensated, right? And generally speaking, demand response curtailment (especially on shorter notice) is compensated at a higher rate than peak energy rates (4x in my area). It shouldn't be the case that one spends more money by participating in a demand response program that not participating, which is what the OP implied.
Nonetheless, voluntary curtailment of demand by consumers (for any objective) must be compensated, right? And generally speaking, demand response curtailment (especially on shorter notice) is compensated at a higher rate than peak energy rates (4x in my area). It shouldn't be the case that one spends more money by participating in a demand response program that not participating, which is what the OP implied.