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A project to reduce the peak electrical demand by 65% for a new residential housing development in the Desert Southwest portion of the US is described. The period of the peak demand is considered to be 1: 00 pm to 7: 00 pm local daylight savings time. Four general approaches are being used to accomplish this. One is the use of a very energy conserving design for the buildings. Second, all of the residences have a photovoltaic array on them. Third, some new approaches to demand side management are being developed whereby the utility and the customer interact. Finally, a Battery Energy Storage System (BESS) is being evaluated. Results found to date are summarized in this paper. Predictions for success are given and work remaining is outlined. (C) 2011 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of the organizing committee of 2nd International Conference on Advances in Energy Engineering (ICAEE).