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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