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This paper discusses the challenges and approach to using responsive load to supply ancillary services in the smart grid. We discuss the types of demand response and ancillary service they would provide by describing spinning reserve, regulation, etc., along with the needed response time and duration. The benefits of supplying ancillary services from loads instead of generation are covered, along with reduced losses, increased transmission capacity, and increased generation capacity. The paper discusses the concept of using smart meters to help large numbers of small loads provide services, barriers involved such as communication speed and interaction between various communication protocols, and the role of developing communication protocols to address these barriers.