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Demand response net benefits test

FERC Order No. 745 requires the ISO to implement a net benefits test that establishes a price threshold above which demand response resource bids are deemed cost effective.  The ISO must perform a monthly analysis based on historical data from the previous year’s supply curve to identify the price threshold estimate that shows where customer net benefits occur. The ISO must submit supporting documentation to its associated tariff revisions to FERC by July 22, 2011.



On May 1, 2014, the ISO implemented a new resource model that reduces barriers to participation for demand response providers by providing them the ability to submit day-ahead economic and real-time emergency energy bids on behalf of retail emergency-triggered demand response programs. This new resource model is in compliance with FERC Order No. 745 requiring net benefits testing.


Initiative status

Implemented: May 1, 2014
FERC approval: July 18, 2013
Tariff amendment filing: July 22, 2011

FERC filings and orders


Monthly demand response net benefits test results

Tariff development

Policy development