Waukesha, Wis.-based Cooper Power Systems has announced it will provide a system for peak demand reduction designed for Baltimore Gas and Electric's residential customers.

Financial terms of the deal were not disclosed, but Cooper Power, a unit of Houston's Cooper Industries (NYSE: CBE), said it expects the project to represent $42 million in revenue over the 2008 to 2011 period.

Cooper Power said the project for Baltimore Gas and Electric would use its Cannon Demand Management solution, which includes Cooper's Yukon enterprise software, along with a combination of smart thermostats and control switches using a wireless communications system.

Baltimore Gas and Electric, a subsidiary of Baltimore's Constellation Energy Group (NYSE: CEG), said it successfully piloted a residential demand response program last summer to support a reduction in peak electric demand usage and energy conservation efforts.

The utility said in addition to Cooper's demand management system, it is offering energy efficiency and conservation programs, such as rebates for energy efficient appliances and discounts for compact florescent light bulbs and and advanced metering.

Cooper said that when expanded to full capacity, the demand management project will provide more than 600 megawatts of energy capacity by 2011.