Ruling on Demand Response Compensation Seen as Critical to Advance of Smart Grid

Electrical manufacturers are welcoming a ruling this week by the U.S. Federal Energy Regulatory Commission (FERC) on setting compensation for demand response participation. The new policy is expected to give a significant boost to demand for “smart grid” technologies.

The FERC policy, RM10-17, requires electric utilities and retail market operators to pay participants in demand response programs the market price per kilowatt for reducing electrical loads when those reductions (often c

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