Parsons Corporation (NYSE: PSN) announced it has been selected by the Los Angeles Department of Water & Power to provide demand response technology and services for managing distributed energy sources within the electrical grid.

Under the five-year contract, Parsons will supply its Demand Response Management System to LADWP. The system is designed to support the utility's goal of achieving 100 percent clean electricity by 2035 and expand LADWP's demand response capacity by more than four times its current level.

The Parsons system offers interoperability with meter data management, customer care, billing, Supervisory Control and Data Acquisition, and automated distribution management systems. The technology interfaces distributed energy resources with existing utility systems and legacy fuel supplies.

"Utility providers around the world are reshaping their capacity plans to meet the growing needs driven by the boom of artificial intelligence and data centers," said Mark Fialkowski, president of Infrastructure North America for Parsons.

Parsons has implemented meter and operational management integration solutions with more than 400 public power utilities across the United States, according to the company's announcement.

The system enables data exchange and coordination across multiple operational platforms to provide grid operators with situational awareness and control capabilities. LADWP operates as the largest municipal utility in the United States, serving the Los Angeles area.