The level of and interest in electric demand response and advanced metering increased significantly beyond the activities discussed in the first report by the staff of the Federal Energy Regulatory Commission. The Commission staff’s first report, Assessment of Demand Response and Advanced Metering, August 2006, presented the results of a comprehensive nationwide survey of these activities. This year’s report provides an informational update on developments and reflects on activity since issuance of the 2006 report. The Commission staff intends to publish another comprehensive report on demand response and advanced metering in 2008 and every even year thereafter, with informational update reports in the intervening years.
This report has two substantive chapters. Chapter II includes a review of the estimated 2006 demand response in RTO and ISO markets and programs, developments in the use of demand response at the state and federal levels, a discussion of the issues associated with the level of demand response achieved, trends in the use of demand response, a summary of activity on demand response in the retail and wholesale sectors that occurred in 2005, and a discussion of barriers to increased demand response. This chapter also contains a summary of Commission demand-response activities. Chapter III discusses developments associated with advanced metering in 2005. In particular, it includes a summary of state activity in response to EPAct 2005 requirements for states to hold proceedings on advanced metering.