Demand Response
A potential but largely unrealized benefit from the development of competitive electricity markets would be the ability of consumers to react to real-time prices that reflected the actual cost of meeting load, so that they can reduce their consumption when the cost of power exceeds its value to the consumer. This potential has been largely unrealized for two primary reasons: the wholesale price of power in ISOs employing a capacity market system to maintain resource sufficiency generally only reflects a portion of the cost of power; and few power consumers are able, or perhaps willing, to adjust their consumption in response to short-term changes in real-time prices at the levels permitted in most energy markets.
William W. Hogan, "Demand Response, Getting the Prices Right," February 15, 2016
Scott Harvey, "Market Manipulation and Demand Response," Rutgers Center for Research in Regulated Industries, 28th Annual Western Conference, June 22, 2015
William W. Hogan, "Time-of-Use Rates and Real-Time Prices," August 23, 2014
Scott Harvey, "Options for Implementing a Dynamic Net Benefits Test Based on the Billing Unit Effect," Prepared for the ISO RTO Council, September 5, 2012.
Scott Harvey, James Bushnell, Benjamin Hobbs, and Steven Stoft, Market Surveillance Committee of the California ISO, "Supplemental Opinion on Economic Issues Raised by FERC Order 745; "Demand Response Compensation in Organized Wholesale Energy Markets," Market Surveillance Committee of the California ISO, June 6, 2011.
Scott M. Harvey, "Overview of the Role of Demand Response in Canadian Electricity Markets," EUCI Demand Response Canada Conference, October 4, 2010.
William W. Hogan, "Demand Response Compensation, Net Benefits and Cost Allocation: Preliminary Comments." FERC Technical Conference, Docket RM10-17-100. Prepared for the ISO/RTO Council, September 13, 2010.
William W. Hogan, "Demand Response Pricing in Organized Wholesale Markets." FERC Docket RM10-17-000. May 13, 2010.
William W. Hogan, "Implications for Consumers of the NOPR’s Proposal to Pay the LMP for All Demand Response." FERC Docket RM10-17-000. May 12, 2010.
William W. Hogan, "Providing Incentives for Efficient Demand Response." Comments on PJM Demand Response Proposals, Federal Energy Regulatory Commission Docket No. EL09-68-000. October 29, 2009.