New England Demand Response Initiative (NEDRI)

The Department of Energy (DOE), with cooperation from the U.S. Environmental Protection Agency (EPA), the Federal Energy Regulatory Commission (FERC), and the New England Conference of Public Utility Commissioners, supported in 2002-2003 efforts to develop a comprehensive, coordinated set of demand response programs and policies for power markets throughout the New England region in a partnership known as the New England Demand Response Initiative. Using a regional consensus approach, NEDRI developed recommendations for workable market rules, reliability standards, and regulatory criteria in order to incorporate a demand response capability into the electricity wholesale and retail markets in New England.

NEDRI was a broad-based, facilitated process that involved the region's independent system operator (ISO-New England), state utility and environmental regulators, power generators and marketers, utilities, consumer and environmental advocates, and other stakeholder groups. Stakeholders throughout New England, as well as key stakeholders in New York and the Mid-Atlantic region (through PJM), were all involved in the decision-making and implementation process.

NEDRI developed best practices for regional and state policies and rules for demand response in New England wholesale and retail electric markets. More information can be found on NEDRI's web site, including the group's final report, Dimensions of Demand Response: Capturing Customer Based Resources in New England's Power Systems and Markets, issued in July 2003. The report includes 38 major recommendations for incorporating demand response in retail and wholesale markets. Many of these recommendations have been adopted or are under active consideration by ISO-New England and the New England states.

FERC-DOE Demand Response Conference

In February 2002, the Federal Energy Regulatory Commission (FERC) and the Department of Energy (DOE) sponsored a Demand Response Conference to raise awareness about demand response programs' potential roles in the evolution of efficient market operations for electric power. More than 400 participants attended.

The purpose of this conference was to:

• Assemble demand response practitioners to comment on the status of demand response programs, their attractiveness to customers, and their effectiveness in reducing electricity demand and prices when power systems are experiencing constraints.
  
  
• Identify actions to expand the use of cost-effective demand response programs.
  
  
• Discuss the appropriate roles of Federal and state governments.

A series of panel discussions addressed topics of importance to Federal and state policy makers. Vendors were on hand at a Table-Top Show to exhibit their products and services and answer questions about costs and benefits.