“Demand Response,” is defined by FERC as changes in electric usage by demand side resources from normal consumption patterns in response to: (1) changes in the price of electricity over time, (2) or incentive payments designed to promote lower electricity use at times of high wholesale prices or during times when system reliability is jeopardized.
Demand response can provide some of the services traditionally provided by generation resources in energy, capacity, and ancillary market segments. Demand response is expected to play an active role in the future energy grid.
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