In compliance with the Federal Energy Regulatory Commission’s Order 745 on demand-response compensation in competitive markets, ISO New England has filed proposed market rules that will result in full integration of demand resources into system operations and energy markets by June 2015.
Behind-the-meter generation will continue to be eligible to provide demand response in New England if the proposed rules are accepted by FERC. The ISO believes its proposed market rules would comply with all aspects of FERC’s Order 745, Final Rule on Demand Response Compensation in Organized Wholesale Energy Markets, and would treat demand-response resources fairly and on a comparable basis with other resources.
The ISO proposal calls for a transition period that would allow the region to continue to offer, with some revisions, the existing programs that allow demand-response providers to participate in the region’s energy markets. The transition period would end in 2015, when proposed rules for full integration of demand resources would take effect. ISO New England’s proposal is subject to FERC approval.
ISO New England has had a long commitment to demand-side resources. The ISO’s first demand-response programs were implemented in 2001 with 63 megawatts (MW) participating. Currently almost 2,800 MW of all types of demand resources, including energy efficiency, are available in New England. And through the Forward Capacity Market, almost 3,600 MW of demand resources will be available in the 2014-2015 timeframe.