Demand Response: Principles for Regulatory Guidance

Published By Peak Load Management Alliance

• Published February 2002
• 47 Page(s)

The purpose of this policy paper is to recommend principles for use by regulatory authorities and others to promote the most cost-effective use of demand response for energy management. Demand response in electricity is defined as load response called for by others and price response managed by end-use customers. Demand response is important to the continued development of wholesale and retail electricity markets. Competitive markets are based on the interaction of supply and demand in response to appropriate price signals. Failure to harness the ability of customers to change their demand in response to prices reduces overall market efficiency, particularly given the volatility of electricity prices.