Dive Brief:
- The Senate has passed a measure to exempt large-volume water heaters used in demand response programs from a ban on the appliances set to go into effect this month.
- Electric cooperatives have been scrambling to challenge a U.S. Department of Energy (DOE) rule which essentially halts manufacture of electric resistance water heaters with a storage capacity of over 55 gallons. DOE says the rule is due to the fact that smaller, modern water heaters are more efficient than the larger traditional models.
- More than 250 electric cooperatives in 35 states use large capacity electric resistance water heaters in demand response programs around the country.
Dive Insight:
The measure will now head to the House, but intense lobbying by the National Rural Electric Cooperative Association appears to be working. Lawmakers in the Senate have passed a bill to exempt large capacity water heaters used in demand response programs from a ban which is set to go into effect on April 16.
“This legislation is a huge win for co-ops across the country and the consumers-members they serve. The bill’s pragmatic, proven approach to efficiency will both help reduce demand for expensive peak energy and harness power generated from renewable sources,” said National Rural Electric Cooperative Association CEO Jo Ann Emerson.
The measure means water heaters up to 75 gallons may be used, but they must be specifically utilized in a demand response program. While a traditional water heater is either off or on, grid-interactive controls and highly-efficiency insulation allow the water heaters to act like a battery, only drawing power when it is less expensive or when the grid is not strained.
“The bill allows co-ops to continue these successful programs that can store energy even as they help consumers save on their monthly electric bills," Emerson said.