Demand Response Programs
The NYISO has two Demand Response programs: the Emergency Demand Response Program (EDRP) and ICAP Special Case Resources (SCR) program. Both programs can be deployed in energy shortage situations to maintain the reliability of the bulk power grid.
The Emergency Demand Response Program is designed to reduce power usage through the voluntary shutting down of businesses and large power users. Companies, mostly industrial and commercial, sign up to take part in the EDRP. The companies are paid by the NYISO for reducing energy consumption when asked to do so by the NYISO.
Special Case Resources is a program designed to reduce power usage through the shutting down of businesses and large power users. Companies, mostly industrial and commercial, sign up to become SCRs. The companies must, as part of their agreement, curtail power usage, usually by shutting down when asked by the NYISO. In exchange, they 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.