SEATTLE - A utility, two paper companies, and the U.S. Navy recently helped the U.S. Department of Energy's (DOE's) Bonneville Power Administration (BPA) successfully test the ability to reduce congestion on transmission lines on the Olympic Peninsula by voluntarily reducing transmission loads during times of critical peak demand as part of a pilot project.
Using an Internet-based trading platform, known as the Demand Exchange, BPA simulated severe weather and asked the four pilot participants to reduce their need for transmission services. BPA then posted an hourly price per megawatt, giving pilot participants the chance to accept, reject, or counter the offer. Participants then bid to reduce their demand using backup generation or shifting load to other hours.