Demand Response: Can FERC and States Do More?

This memorandum addresses the following seven questions:

  1. What are the boundaries on FERC's authority to stimulate demand response in wholesale power markets?
  2. In addition to requiring RTOs to treat demand response comparably to generation, what else could FERC do to stimulate demand response?
  3. Given the opportunities FERC has created, what actions might states take to stimulate demand response in wholesale power markets?
  4. How might FERC and others influence state-level demand response policy?
  5. Could FERC use its jurisdiction to stimulate more advanced metering?
  6. Can FERC use its reliability jurisdiction to stimulate demand response?
  7. What role might the Order 1000 processes play in stimulating demand response?

In addition to the download of the paper (at "Open PDF"), a recording of the presentation of this memorandum is available.

For readers  new to this legal area and unfamiliar with the concepts in this memorandum, particularly the concepts of  jurisdiction, regional transmission organizations, transmission service, market-based rates, demand response, and stranded investment, I have prepared an accompanying outline of background materials.