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Impact of demand response on US utilitiesThe penetration of advanced meters in the United States continues to climb with an additional 5.9 million units installed and operational between 2011 and 2012, resulting in advanced meters representing almost 30% of all meters in the US, according to the Federal Energy Regulatory Commission staff’s ninth annual report on demand response and advanced metering.

Based on publicly-available information and discussions with market participants and industry experts, the study found that Texas Regional Entity leads with a 70% penetration, followed by the Western Electric Coordinating Council at 51%.

How effective is demand response?

The report also looks at the impact of demand response on cutting peak demand.

FERC’s data suggests that programmes are being effective with reduction in consumption due to demand response from 2,451 MW to 28,503 MW from 2012 to 2013 or 9.3%.

The report said: “Demand response resources made significant contributions to balancing supply and demand during the late 2013 and early 2014 extreme cold weather events and helped preserve Eastern RTO and ISO reserve levels.”

The study highlighted challenge to programmes however with the D.C. Circuit Court of Appeals’ ruling, in a challenge by the Electric Power Supply Association, voiding FERC’s jurisdiction over pricing of DR in wholesale energy markets. FERC is seeking a Supreme Court review of the ruling.

Full results of the FERC evaluation can be found in Assessment of Demand Response and Advanced Metering, released in December 2014.