Friday, April 27, 2012

How Are Demand Response (DR) Programs Administered??

Administration of DR programs
Administration of demand response programs occurs at the utility or independent system operator (iso) level[1]. Utilities run these programs for the benefit of their RTO, or ISO to promote grid reliability and for other reasons.  They are usually (but not always) required to offer these programs by their overseeing authority, the public utility commission.  Aggregators function within these boundaries.  That is, at times utilities set up particular programs that the aggregators can participate in, but they are subject to program constraints like any other participant.  The only difference between joining with the aggregator and the utility is the level of service and support one receives.  In all other respects, they are the same programs and thus, the same rules. A confusing extra feature of this arrangement is that at times aggregators will bundle several distinct program options under one brand one and market it as a different program to the end-use customer[2].  It is worth noting that generally PUCs have no authority over the contract between the aggregator and the end use customer, the source of much of the jurisdictional confusion around aggregators.

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