Demand Response Programs
The NYISO has four Demand Response programs: the Emergency Demand Response Program (EDRP), the ICAP Special Case Resources (SCR) program, the Day Ahead Demand Response Program (DADRP) and the Demand Side Ancillary Services Program (DSASP).
Both the EDRP and SCR program can be deployed in energy shortage situations to maintain the reliability of the bulk power grid. Both programs are designed to reduce power usage through shutting down of businesses and large power users. Companies, mostly industrial and commercial, sign up to take part in the programs. The companies are paid by the NYISO for reducing energy consumption when asked to do so by the NYISO. Reductions are voluntary for EDRP participants. SCR participants are required to reduce power usage and as part of their agreement are paid in advance for agreeing to cut power usage upon request.
The NYISO's Day-Ahead Demand Response Program (DADRP) allows energy users to bid their load reductions, or "negawatts", into the Day-Ahead energy market as generators do. Offers determined to be economic are paid at the market clearing price. DADRP allows flexible loads to effectively increase the amount of supply in the market and moderate prices.
The Demand Side Ancillary Services Program (DSASP) provides retail customers that can meet telemetry and other qualification requirements with an opportunity to bid their load curtailment capability into the DAM and/or Real-Time Market to provide Operating Reserves and regulation service. Scheduled offers are paid the appropriate marketing clearing price for reserves and/or regulation.