In these markets, generation output is compensated at the full spot price, usually referred to as the Locational Marginal Price (LMP). Typically, compensation for customers that reduced load varied widely between organized markets. The new rule will compensate demand response customers at the full LMP for reductions that benefit all customers, and will drive consistency across all organized markets.
Kevin R. Evans, EnergyConnect President and CEO, “This landmark decision is just the motivation needed to transform the market and empower customers, clearly validating EnergyConnect’s commitment and leadership in price-responsive demand. All customers will benefit as they qualify for significantly increased demand response participation and earnings opportunities. We applaud FERC’s leadership in underscoring the importance of proper compensation to incentivize price-based participation.”
Regardless of a customer’s electricity supply arrangement, EnergyConnect believes the FERC decision opens the market for more active participation in price-responsive demand strategies. “Once the ruling takes effect, customers will enjoy greater flexibility and control to shift when it makes the most sense within the context of their business or operational constraints.”
This translates into better earnings opportunities for subscribers of EnergyConnect’s GridConnect integrated demand response platform, while enabling more efficient use of electricity, lower prices, and providing a more reliable grid.
EnergyConnect provides Demand Response technologies and services to commercial, institutional, and industrial consumers, enabling them to manage their use of electricity in response to market prices or regional power shortages. EnergyConnect’s GridConnect technology platform provides a scalable, cost-effective, clean technology to enhance the grid’s efficiency and reliability. For more information, visit www.energyconnectinc.com.