How to establish a load management program
Load management programs are becoming essential as utilities face a surge in demand growth. Learn how to launch a load management program in 8 practical steps.
Utilities across the country are confronting a new operational reality: demand is rising faster than many systems can accommodate, caused in part by data center development, aging infrastructure, and increasing pressure to keep rates affordable for customers. These realities are converging to create peak‑load challenges that can no longer be solved by traditional supply‑side investments alone.
With U.S. electricity demand projected to rise 25% by 2030 and reserve margins tightening across service territories, utilities need flexible and cost-effective ways to balance load and maintain grid reliability. Load management programs offer a proven path forward, yet many demand-side management and customer program managers often feel stuck at the starting line. It’s not always clear how to begin, who needs to be involved, or what the right program design should look like.
While launching a load management program can seem complex, establishing a clear foundation and implementation approach will help utilities move from planning to execution quickly and confidently. This article outlines eight practical steps to help utilities understand what’s required, where to begin, and how to move from interest to implementation with confidence.
Types of load management programs and key benefits
Load management encompasses several program models, involving different customer interactions and utility controls. Understanding these options helps utilities select the right approach (or combination of approaches) for their service territory and customer base.
Demand response programs incentivize customers to reduce or shift electricity use during peak periods in exchange for rebates, bill credits, or other rewards. These programs can be event-based (called a few times per year) or continuous (ongoing price signals).
Direct load control programs allow utilities to remotely manage customer devices—like thermostats, water heaters, battery energy storage systems, electric vehicle chargers, and pool pumps—during peak events with customer permission. Customers receive incentives for program participation and retain the ability to opt out of individual events.
Time-of-use pricing structures use rate signals to encourage customers to shift usage to off-peak hours when electricity is less expensive. These programs make grid conditions transparent to customers and reward flexible consumption patterns.
Each one of these programs offers compelling benefits that address today's most pressing utility challenges:
- Defer costly infrastructure upgrades by reducing peak demand instead of building new generation or transmission capacity.
- Improve grid reliability during high-demand periods and extreme weather events.
- Lower costs compared to traditional supply-side solutions, with savings passed on to customers.
- Maintain affordable rates while meeting growing electricity demand and regulatory requirements.
- Deliver results quickly—often within 12 to 18 months—compared to multi-year infrastructure projects.
8‑step guide to launching an effective load management program
Load management programs can unlock meaningful relief at a fraction of the cost of traditional infrastructure, but requires navigating several key challenges. Customer enrollment and engagement remain persistent hurdles, as many customers do not fully understand how programs work or worry about losing control over their energy use. Technology integration can also complicate deployment, particularly when utilities must coordinate across multiple device manufacturers and internal systems. Internal alignment across operations, planning, IT, customer service, regulatory affairs, and finance is another common obstacle.
Although these challenges are real, they are far from insurmountable. Planning and deploying these programs is where a structured framework becomes essential. To help utilities move from curiosity to action, the following guide breaks the process into clear steps.
1. Define objectives and scope
To begin, work across your organization to define the objectives and scope of the program. This involves clarifying specific goals, such as peak load reduction, grid reliability improvements, cost savings, or renewable energy integration. Clearly defined objectives should be measurable and aligned with broader system planning and regulatory goals.
Next, identify the target sectors, which may include residential, commercial, industrial, or a combination of these areas. Finally, based on the needs and characteristics of selected sectors, determine the type of program to implement, such as demand response, direct load control, and time-of-use pricing.
2. Assess load profiles and grid needs
To effectively plan for future grid needs, it is important to analyze historical load data to identify peak periods and load patterns in your service area. Follow this with demand forecasting that accounts for expected growth, electrification trends, and the integration of distributed energy resources (DERs). In parallel, evaluate grid constraints, including transmission and distribution bottlenecks as well as capacity limits, to ensure reliable and efficient operation.
3. Engage stakeholders
Stakeholder engagement is an essential part of shaping program design. Start early to identify concerns, surface solutions, and build buy-in before formal proceedings.
Engage both internal and external groups. Internally, align engineering, planning, operations, customer service, marketing, and IT teams. Externally, work with regulators, customers, third-party vendors, regional energy providers, and community groups. Use surveys, focus groups, and market analysis to understand stakeholder priorities and tailor your approach accordingly.
Forming advisory groups is a beneficial strategy to gather feedback on the proposed approach, gain insights into current activities, and foster support for the planned direction. Sustain engagement throughout program implementation by monitoring feedback and adjusting strategies based on participation patterns and stakeholder input. Continuous stakeholder engagement helps ensure that programs remain adaptive to evolving customer and system needs.
4. Design program elements
Key program elements include the selection of which advanced technologies to deploy and when to launch. Smart thermostats, load control switches, and advanced metering infrastructure (AMI) may already exist in your service territory and be faster to integrate. Consider offering multiple technology pathways to give customers flexible participation options.
To encourage customer participation, determine which incentive option will drive the most uptake: rebates, bill credits, or dynamic pricing options and test different approaches during pilot programs. Your communication strategy is critical to program success—customers can only participate in a program if they are aware of it. Successful load management programs often rely on marketing campaigns focused on education, enrollment, and customer benefits to increase awareness and drive engagement.
ICF’s experience with a Mid-Atlantic utility demonstrates the impact of strategic marketing of demand response programs. Over six years, comprehensive multichannel marketing campaigns drove enrollment to more than 34,000 devices. The approach hinged on both education and customer benefits, including household comfort, convenience, and savings.
5. Develop infrastructure
Effective technology infrastructure is essential for designing, delivering, and optimizing load management programs at scale.
ICF’s Sightline platform provides this infrastructure for load management programs. It integrates with existing utility systems—supervisory control and data acquisition (SCADA), customer information systems, outage management—while automating program workflows, incentive processing, and contractor coordination. Sightline also uses predictive analytics and advanced metering infrastructure (AMI) data to identify customers most likely to participate in programs, measure program impacts on energy usage, and drive continuous program improvement. From pilot phase through full-scale deployment, Sightline’s integrated approach reduces operational complexity while improving program performance and customer satisfaction.
6. Pilot and evaluate
To ensure program viability, launch a pilot program by testing the strategy with a small group of customers first. During this phase, measure performance by evaluating load reduction, customer satisfaction, and cost-effectiveness—and then use these results for program refinement before full-scale implementation.
Southern Maryland Electric Cooperative’s FlexHome Pilot demonstrates this approach. Launched in September 2024, the pilot treats water heaters as thermal “batteries” to curtail load during peaks. After 133 events across 72 participants in 2025, the pilot achieved 8.5 kW average reduction per event. Opt-out rates have stayed consistently below 3%, with some months reaching 0%. These results are providing the operational insights needed to refine program design before broader rollout.
7. Full-scale implementation
Roll out the program gradually, leaving room for modifications to optimize against your goals. Monitor progress continuously and improve the approach based on data and customer feedback. Maintain transparent communication with participants and report outcomes regularly to stakeholders and regulators to ensure transparency and accountability.
8. Regulatory alignment and compliance
Ensure alignment with state and federal regulations, and file all necessary documentation, including tariffs, program rules, and cost recovery mechanisms. If applicable, participate in capacity or ancillary services markets to maximize program value and compliance.
What a successful load management program looks like
When executed well, load management programs deliver:
- Measurable peak‑load reduction.
- More predictable system performance.
- Improved customer satisfaction and engagement.
- Deferred capital investments.
- Stronger alignment with regulatory expectations.
- Faster results than traditional infrastructure approaches.
Our tools, including Sightline, help utilities define program parameters, align internal stakeholders, design customer‑centered offerings, integrate enabling technology, and manage operations from pilot through full deployment.
Successfully launching a load management program requires meticulous planning across objectives, technology selection, customer engagement, infrastructure development, and regulatory alignment. But the payoff is substantial: reduced peak demand, improved system efficiency, and customers who actively participate in grid operations.