The median cost per enrolled DR customer fell from $234 in 2013 to $159 in 2024 — a 32% improvement in program cost efficiency over 11 years as utilities scaled their programs and optimized incentive structures. This improvement reflects both the maturation of DR technology and the shift from high-cost direct load control programs toward smart thermostat and automated demand response platforms.
Otter Tail Power at $16/customer with 185 MW of actual peak savings represents the most cost-effective large DR program in the 2024 dataset — rural Midwest utilities with large agricultural and industrial loads can achieve very low per-customer costs. ConEd at $928/customer reflects the high cost of urban DR in dense markets where customer acquisition and incentive costs are significantly higher, though their 348 MW of actual savings demonstrates the programs are genuinely effective.
For regulators reviewing DR cost recovery in rate cases, the per-customer cost benchmark is the primary efficiency metric. A utility spending $500/customer for a program yielding $33/customer results faces scrutiny. The comparison should also account for the avoided cost of alternative peaking capacity — if a simple-cycle gas peaker costs $150/kW-year, a DR program delivering MW at equivalent cost is economically justified.
| Utility | Customers Enrolled | Cost per Customer | Energy Savings/Customer (MWh) | Actual Peak Savings (MW) | Total Program Cost ($K) |
|---|
| Year | Cost per Customer | Actual Peak (MW) |
|---|---|---|
| 2024 | — | — |
| 2023 | — | — |