Load management, also known as demand side management (DSM), is the process of balancing the supply of electricity on the network with the electrical load by adjusting or controlling the load rather than the power station output. This can be achieved by direct intervention of the utility in real time, by the use of frequency sensitive relays triggering the circuit breakers (ripple control), by time clocks, or by using special tariffs to influence consumer behavior. Load management allows utilities to reduce demand for electricity during peak usage times ("peak shaving"), which can, in turn, reduce costs by eliminating the need for peaking power plants. In addition, some peaking power plants can take more than an hour to bring on-line which makes load management even more critical should a plant go off-line unexpectedly for example. Load management can also help reduce harmful emissions, since peaking plants or backup generators are often dirtier and less efficient than base load power plants. New load-management technologies are constantly under development — both by private industry and public entities.
In 1972, Theodore George “Ted” Paraskevakos, while working for Boeing in Huntsville, Alabama, developed a sensor monitoring system which used digital transmission for security, fire, and medical alarm systems as well as meter-reading capabilities for all utilities. This technology was a spin-off of his patented automatic telephone line identification system, now known as caller ID. In, 1974, Paraskevakos was awarded a U.S. patent for this technology.
At the request of the Alabama Power Company, Paraskevakos developed a load-management system along with automatic meter-reading technology. In doing so, he utilized the ability of the system to monitor the speed of the watt power meter disc and, consequently, power consumption. This information, along with the time of day, gave the power company the ability to instruct individual meters to manage water heater and air conditioning consumption in order to prevent peaks in usage during the high consumption portions of the day. For this approach, Paraskevakos was awarded multiple patents.