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Many types of demand response programs have been developed with some programs designed to provide reliability benefits. In general, demand response participation in the real-time wholesale market and the ancillary services market (ASM), in particular, has been extremely limited. This limitation in participation is the direct result of these markets requiring performance and telemetry that is similar to quick start generation. ISO New England (ISO-NE) has undertaken the development of a Demand Response Reserve Project. The goals of the project include: 1) achieving consistency with NPCC requirements of capacity resources, 2) examining acceptable telemetry options for demand response, (which can provide functionally equivalent information to the system operator). This paper describes the Demand Response Reserve Project (DRRP) currently under development by ISO-NE. The DRRP is presently scheduled for implementation on October 1, 2005.