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Peak Demand
Reductions

When daylight availabilityand summer outdoor 
temperatures are hig h, daylighting can substan- 
tially reduce peak electric loads due to cooling 
andlighting. This will result in monthly savings 
in demand charges, but it also reduces pressure 
on the utilityto addnew generating capacity(e.g. 
hydroelectric, nuclear, etc.). In the case
of a ret- 
rofit of an existing building, it provides new 
available capacity for other needs. Some
utili- 
ties are still willing to "purchase" these 
"negawatts"with upfront rebates that help off- 
set the building owner's first cost. Conceptu- 
ally, the g lazing system becomes an energy 
source (relativeto aconventionalalternative) and 
the utility makes an investment in this "energy 
system" as if it were a new power plant. These 
payments can range from $0.50 to $5.00 per 
square foot of glazing. As the electric
utility in- 
dustry is restructured stateby state, distributed 
generation optionsandreal time pricing will pro- 
vide additional incentives to manage
electric 
demand carefully.
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