Financial incentives to encourage demand response participation by plug-in hybrid electric vehicle owners

Demand response has the potential to increase the flexibility and reliability of the bulk electric system. Although the majority of demand response is currently provided by the industrial and commercial sectors, the residential sector has the potential to ultimately provide more demand response than any other sector. Plug-in hybrid electric vehicles (PHEVs) further increase the ability of residential customers to participate in demand response programs and help to offset any negative impacts that may stem from PHEV charging. This paper will explore the financial incentives necessary to encourage PHEV owners to participate in demand response programs using a case study based on existing time-of-use rates in the Madison Gas & Electric service territory.