To: Electric Power Research Institute (EPRI)
From: ICF International
Re: Demand Response Programs for MISO and ERCOT
This memo provides details on behind-the-meter generation (BTMG), and demand response program for Midcontinent Independent System Operator (MISO), and Electric Reliability Council of Texas (ERCOT). Demand response is the change in electric usage by the end user from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is at risk . Demand response can be provided by either by continuously controllable loads or with BTMG. A market participant is compensated by Independent System Operator’s (ISO’s) for providing demand response. The following information gives details on the demand response program categories and behind-the-meter (BTM) generators participating in these programs.
MISO manages a multi-state region with an annual peak load of 105,000 MW. It designs and implements wholesale markets for the Midwest region and produces an annual system planning report. MISO issues a document on demand response entitled, Business Practices Manual: Demand Response. This document provides with the information needed to understand the purpose and application of Demand Response within MISO region. MISO has three demand response programs
1. The Demand