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NC State Extension

Demand Side Management (DSM) – Defined

The planning, implementation, and monitoring of utility activities designed to encourage consumers to modify patterns of electricity usage, including the timing and level of electricity demand. It refers to only energy and load-shape modifying activities that are undertaken in response to utility-administered programs. It does not refer to energy and load-shaped changes arising from the normal operation of the marketplace or from government-mandated energy efficiency standards. Practical info: Compared with utilities’ past history, energy prices are expected to rise and availability is expected to fall. DSM programs are therefore likely to proliferate.