Demand response issues and experience in New England

Demand-side resources play a key role in meeting New England's resource needs. Demand resources are expected to grow, partly because they will be eligible for capacity payments according to the Forward Capacity Market (FCM) rules and receive economic incentives to provide ancillary services. While demand resources may reduce the need to build physical infrastructure, successfully integrating large amounts of demand-response resources into the electric power system presents many challenges that are discussed in this paper.