The Federal Energy Regulatory Commission, the only regulatory body with a mandate to govern our electrical system, felt that a “commitment to reduce demand” should “be compensated the same amount as an equivalent commitment by generators to increase supply.” This was not just about fairness, but also a means of making the grid a more integrative machine. Or, in their words, “paying demand response providers the full value of their contribution to the market would help overcome preexisting barriers to demand-response participation and increase the reliability and competitiveness of wholesale
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