Abstract: A system and method for managing electrical energy output by a power utility facility are disclosed. The system comprises a computing device associated with a power utility facility that is connected to a computing device operating at a customer facility. The power meters linked to the computing devices provide readings of energy consumption by the customer facility and energy output by the utility. The computing device associated with the utility is configured to control electrical energy output by the power utility facility by predicting a peak energy demand and by requesting the computing device associated with the customer facility to reduce energy consumption when the predicted peak energy demand by the customer facility exceeds a predetermined peak energy consumption setpoint. If the peak energy demand still exceeds the setpoint after the customer reduced its energy consumption, the utility dynamically adjusts the setpoint to match the demand.