Patent ID: 8583288

Claim:
A method for managing an energy supply of a utility provider, comprising: calibrating one or more climate controlled spaces for a controller by calculating a heating or cooling ratio for the one or more climate controlled spaces; determining if an energy supply surplus exists within a utility system; if an energy supply surplus exists, then start using the one or more climate controlled spaces as energy sinks for expending energy according to the heating/cooling ratio; determining if an energy supply deficit exists; and if an energy supply deficit exists, then start using the one or more climate controlled spaces as energy sources in which a direct load control algorithm is used to reduce consumption of energy, wherein the heating or cooling (H or C) ratio is governed by the following equation: H or C ratio=( t 0 +t 1)/ t 2 wherein t 0 is a time period between when a set point temperature is reached and when a thermostat issues a request to a space conditioning load, t 1 is a time period between when the thermostat issues a request to the space conditioning load and when the space conditioning load is allowed to be activated, and t 2 is a time period between when the space conditioning load is allowed to be activated and when the space conditioning load is stopped once it reaches a set point temperature of the thermostat.