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.

Outcome

FERC filing: July 22, 2011

Implementation

Monthly demand response net benefits test results filed with FERC

Policy development

Tariff development