In a whitepaper written for the Midwest ISO, The Brattle Group examines alternatives for fostering economic demand response (DR) in energy markets. The whitepaper’s near-term recommendation is for the Midwest ISO to enable the participation of curtailment service providers (CSPs) in its energy markets, as a bridge to a future in which the states enable the firstbest approach to economic DR by widely implementing retail dynamic pricing rates. The whitepaper provides a two-year roadmap focused on: (1) establishing a customer baseline load (CBL) methodology, measurement and verification (M&V) protocols, and settlement changes to enable CSPs; and (2) engaging state commissions and utilities in discussing the benefits of demand response and dynamic pricing.

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Executive Summary - Fostering Economic Demand Response in the Midwest ISO