Price-Responsive Demand Key Project

Access documents related to the Price-Responsive Demand project.

Project Overview

On March 15, 2011, the Federal Energy Regulatory Commission (FERC) issued Order 745: Demand Response Compensation in Organized Wholesale Energy Markets, which requires organized wholesale energy markets to pay demand-response providers the market price for electric energy for reducing consumption below expected levels, when doing so lowers costs to consumers and helps balance real-time supply and demand. See the ISO’s Demand Resources page.

Various sets of changes to the market rules are being implemented to meet the obligations of Order 745 through the ISO’s full integration of demand response:

• The ISO modified its existing demand-response programs to immediately comply with the requirements of Order 745.
• The ISO is also working toward full integration of demand response into the energy markets to further improve overall market efficiency.
• The ISO has proposed modifications to market rules to allow demand response resources that participate in the energy market to also provide reserves, similar to other supply resources.

The Price-Responsive Demand project is just one of several key projects at the ISO, which continuously undertakes a variety of short- and long-term projects to enhance the region’s competitive wholesale electricity markets and ensure reliable operation of the power grid.