Pilot Programs Supporting Smarter Energy Use

This year, Central Electric Power Cooperative is launching a series of pilot programs designed to better understand how emerging technologies, flexible resources and new rate structures can work together to benefit members, distribution co-ops and Central’s system. These pilots will help inform future program design while testing tools that support affordability, reliability and member choice.

Generator Pilot

Central is launching a generator pilot targeting commercial and industrial members with backup generators larger than 30 kW. The pilot aims to enroll 30 to 40 generators and will utilize Generac’s Blue Pillar devices to issue control and provide measurement.

Sites will be selected based on generator capacity, operational hours and business type to optimize performance while minimizing disruption. All participating generators must meet applicable fuel and emissions standards to ensure environmental compliance.

Participants will be eligible for upfront and performance-based incentives. A $1000 incentive will be awarded upon enrollment, with an additional $250 available for participants who complete a post-program survey and opt out of no more than one event. A $7/ kW per event incentive will be paid as well.  This incentive includes an incentive to the member to participate, maintenance costs, and fuel costs associated with operating their generator. 

The pilot will help Central evaluate whether the Blue Pillar device performs as expected, whether generators can be effectively controlled through distributed systems technology and whether the data collected supports broader program development. Central will also assess system-level and financial benefits, program management needs, incentive structures, promotion strategies and overall member satisfaction.

Three-Part Rate Education and Optimization Pilot

Central’s three-part rate initiative focuses on helping members understand how their electric rate works and how they can take steps to optimize energy use under a three-part rate structure.

The initiative begins with foundational education that explains what a three-part rate is, how it differs from traditional rate designs and what actions members can take to manage energy use more effectively. Educational content will also highlight technologies that can support optimization, including smart thermostats, electric vehicles and other connected devices.

To support this effort, Central will explore an interactive tool hosted on each participating co-op’s website. Similar to existing EV education tools, this platform would provide members with easy-to-understand, interactive information tailored to their usage patterns and rate structure.

In addition, Central will launch a year-long pilot with Optiwatt focused on members with smart devices—particularly smart thermostats such as Nest, ecobee and Honeywell. The pilot will begin with co-op employees during the first three to four months, enrolling approximately 200 participants, before expanding to up to 500 members.

Key research questions include whether technology-enabled tools increase participation in rate optimization, whether the benefits justify the cost of the technology, how members perceive the value of these tools and whether results differ between winter and summer months.

Residential Battery Pilot

Central is also launching a residential battery pilot for co-ops using two-part and three-part rates, building on the growing number of battery installations already in the Santee Cooper balancing authority.

Currently, there are more than 700 residential batteries across Central’s system. Of those, approximately 52 percent are Tesla systems, 20 percent Generac and 11 percent Enphase, with an average system size of 7.5 kW and 17.7 kWh.

The pilot will evaluate the value of residential battery systems for members and the system as a whole, particularly under alternative rate structures. Central will assess battery performance under two-part versus three-part rates and examine potential member benefits, system impacts and operational considerations.

As part of the pilot, Central will also evaluate original equipment manufacturer and vendor capabilities in coordination with ODEC for distributed systems technology integration. A key focus is enabling a whole-home approach to energy optimization by allowing members to automate smart devices, including thermostats, batteries, water heaters and EVs, to better align usage with a three-part rate.