Demand-response and advanced-metering programs have grown significantly over the past year, according to a recent report by the Federal Energy Regulatory Commission.

The report, “Assessment of Demand Response and Advanced Metering 2007,” charts progress in the number of demand-response programs, the number of states introducing opportunities for demand response and the key role that demand response is playing in organized wholesale power markets.

This year's report notes major demand-response developments in wholesale markets, including the forward capacity markets and the ancillary services markets, and the development of new reliability-based demand-response programs. The report estimates that demand response in 2006 lowered the consumption of electricity by 1.4% to 4.1% during the periods of peak demand on the systems.

The report also notes a rise in the number of large utilities planning to install advanced metering. According to the report, if all the announced deployments actually occur, more than 40 million new advanced meters will be deployed in the next several years.