Substantial policymaking on demand response under way in U.S.


Dan Delurey,
Executive Director,
Washington, DC, U.S.A. — (METERING.COM) — June 23, 2010 – A substantial amount of state policymaking related to demand response, smart metering and the smart grid has happened recently or is presently underway, according to a new report from the Demand Response Coordinating Committee (DRCC).

The report, “Demand Response & Smart Grid – State Legislative and Regulatory Policy Action Review: October 2008 – May 2010,” also reflects a great diversity of approaches taken by states and many levels of activity.

The report, which was prepared as an update of a 2008 review of state and federal policy actions in the wake of the Energy Policy Act of 2005 (EPACT 2005), details activities on a state by state basis, based on publicly available information. The report continues to cover EPACT 2005 implementation efforts as well as the consideration by state regulatory commissions of the two smart grid PURPA Standards established by the Energy Independence & Security Act of 2007. In addition, the report catalogues regulatory commission action independent of federal policy as well as state legislative activity and efforts by state agencies. However, it does not cover federal activity, which will be the subject of a separate report later in the year.

Notably for more than a third of the states no legislative or regulatory policy activity during the review period was identified. These states are Alabama, Alaska, Georgia, Hawaii, Idaho, Louisiana, Michigan, Mississippi, Missouri, Montana, Nebraska, North Dakota, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Vermont, and Wyoming.

“State action has been fundamental to the growth of the demand response and smart grid space,” commented Dan Delurey, executive director of the DRCC. “Without the interest of and efforts by state regulatory commissions, state legislatures, and governors, many customers would not yet know the benefits of having information about electricity consumption and the ability to be an active participant in making the electric grid cleaner, more reliable, and more cost effective. This report also shows that there are many different effective approaches that states can take to enable customers to become smart electricity consumers."

The DRCC aims to increase the knowledge base in the U.S. on demand response and facilitate the exchange of information and expertise among demand response practitioners and policy makers.