Toward a New Paradigm for Valuing Demand Response

There is value in DR, but it needs to be evaluated correctly. The pricing experiment in California showed that well-designed dynamic pricing programs can have a significant impact on critical peak loads, and California's investor-owned utilities are using the experimental results to develop business cases for advanced metering. A key question in developing these business cases is how much value to attach to a kW of load that is curtailed during critical times.