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When It Comes to Demand Response, Is FERC Its Own Worst Enemy?

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  • Bushnell, James
  • Hobbs, Benjamin F.
  • Wolak, Frank A.

Abstract

There is a significant risk of creating conditions that will crowd out true price response by focusing too much on demand response programs with unverifiable baselines and reliability-based rather than price-based mechanisms for obtaining consumption reductions.

Suggested Citation

  • Bushnell, James & Hobbs, Benjamin F. & Wolak, Frank A., 2009. "When It Comes to Demand Response, Is FERC Its Own Worst Enemy?," The Electricity Journal, Elsevier, vol. 22(8), pages 9-18, October.
    • Handle: RePEc:eee:jelect:v:22:y:2009:i:8:p:9-18
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    Cited by:

    1. David P. Brown & David E. M. Sappington, 2016. "On the optimal design of demand response policies," Journal of Regulatory Economics, Springer, vol. 49(3), pages 265-291, June.
    2. Xu Chen and Andrew N. Kleit, 2016. "Money for Nothing? Why FERC Order 745 Should have Died," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    3. Muñoz, Francisco D. & Suazo-Martínez, Carlos & Pereira, Eduardo & Moreno, Rodrigo, 2021. "Electricity market design for low-carbon and flexible systems: Room for improvement in Chile," Energy Policy, Elsevier, vol. 148(PB).
    4. Patrick Ludwig & Christian Winzer, 2022. "Tariff Menus to Avoid Rebound Peaks: Results from a Discrete Choice Experiment with Swiss Customers," Energies, MDPI, vol. 15(17), pages 1-21, August.
    5. Lund, Peter D. & Lindgren, Juuso & Mikkola, Jani & Salpakari, Jyri, 2015. "Review of energy system flexibility measures to enable high levels of variable renewable electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 785-807.
    6. Masahiko Aoki & Geoffrey Rothwell, 2013. "A comparative institutional analysis of the Fukushima nuclear disaster: Lessons and policy implications," Chapters, in: Comparative Institutional Analysis, chapter 8, pages 105-132, Edward Elgar Publishing.
    7. Faria, P. & Vale, Z., 2011. "Demand response in electrical energy supply: An optimal real time pricing approach," Energy, Elsevier, vol. 36(8), pages 5374-5384.
    8. Zhao, Huan, 2011. "Four Market Studies for the Beef and Electric Power Industries," ISU General Staff Papers 201101010800001360, Iowa State University, Department of Economics.
    9. Juliano Camargo & Fred Spiessens & Chris Hermans, 2018. "A Network Flow Model for Price-Responsive Control of Deferrable Load Profiles," Energies, MDPI, vol. 11(3), pages 1-17, March.
    10. Vishal V. Agrawal & Şafak Yücel, 2022. "Design of Electricity Demand-Response Programs," Management Science, INFORMS, vol. 68(10), pages 7441-7456, October.
    11. Nolan, Sheila & O’Malley, Mark, 2015. "Challenges and barriers to demand response deployment and evaluation," Applied Energy, Elsevier, vol. 152(C), pages 1-10.
    12. Walsh, Darragh & Malaguzzi Valeri, Laura & Di Cosmo, Valeria, 2016. "Strategic bidding, wind ownership and regulation in a decentralised electricity market," MPRA Paper 71502, University Library of Munich, Germany.
    13. Hung-po Chao & Mario DePillis, 2013. "Incentive effects of paying demand response in wholesale electricity markets," Journal of Regulatory Economics, Springer, vol. 43(3), pages 265-283, June.
    14. James Buthman, 2015. "Institutionalizing renewable electricity: the long-term potential for policy learning," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 5(4), pages 526-536, December.
    15. Xiao, Jingjie & Liu, Andrew & Pekny, Joseph, 2012. "Quantify Benefits of Home Energy Management System Under Dynamic Electricity Pricing," MPRA Paper 58781, University Library of Munich, Germany.
    16. Tim Schittekatte & Valerie Reif & Leonardo Meeus, 2021. "Welcoming New Entrants into European Electricity Markets," Energies, MDPI, vol. 14(13), pages 1-20, July.
    17. Hung-po Chao, 2011. "Demand response in wholesale electricity markets: the choice of customer baseline," Journal of Regulatory Economics, Springer, vol. 39(1), pages 68-88, February.
    18. Masahiko Aoki & Geoffrey Rothwell, 2011. "Organizations under Large Uncertainty: An Analysis of the Fukushima Catastrophe," Discussion Papers 11-001, Stanford Institute for Economic Policy Research.
    19. Xiao, Jingjie, 2013. "Grid integration and smart grid implementation of emerging technologies in electric power systems through approximate dynamic programming," MPRA Paper 58696, University Library of Munich, Germany.
    20. Jiang, Bo & Farid, Amro M. & Youcef-Toumi, Kamal, 2015. "Demand side management in a day-ahead wholesale market: A comparison of industrial & social welfare approaches," Applied Energy, Elsevier, vol. 156(C), pages 642-654.
    21. Masahiko Aoki & Geoffrey Rothwell, 2011. "Coordination Under Uncertain Conditions : An Analysis of the Fukushima Catastrophe," Governance Working Papers 23220, East Asian Bureau of Economic Research.
    22. Claire Bergaentzlé, 2013. "From smart technology to smart consumers: for better system reliability and improved market efficiency," Post-Print halshs-01011169, HAL.
    23. Faruqui, A. & Hajos, A. & Hledik, R.M. & Newell, S.A., 2010. "Fostering economic demand response in the Midwest ISO," Energy, Elsevier, vol. 35(4), pages 1544-1552.
    24. Hung-po Chao, 2012. "Competitive electricity markets with consumer subscription service in a smart grid," Journal of Regulatory Economics, Springer, vol. 41(1), pages 155-180, February.

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