Demand Side Management (DSM) programs are utility sponsored energy efficiency programs with the purpose to lower the current demand for energy. This lowered demand will allow utilities to postpone additional energy generation which lead to higher energy costs for all. Since the low income community pays above the typical percentage of their income towards utility costs, successful DSM programs are consistent with the mission of community action.

Community Action Kentucky's involvement with DSM stems from a grant, which is part of the Low-Income Home Energy Assistance (LIHEAP) Program, and allows Community Action Kentucky to provide technical assistance to ongoing utility funded partnerships and to work toward the creation of new utility, energy conservation or assistance programs. In 2013, Community Action Kentucky was named the lead agency to carry out the action item, "Improving residential housing stock via utility community sponsored weatherization" in the Kentucky Action Plan for Energy Efficiency.

Community Action Kentucky also represents community action agencies and low-income customers before proceedings at the Public Service Commission (PSC), reviews documents and rulings of the PSC, and tracks legislative development trends on the Federal, State and local levels that affect utility industry restructuring. Additionally, Community Action Kentucky frequently intervenes in utility rate cases and other proceedings at the Public Service Commission on behalf of low-income consumers.