California Independent System Operator demand response & proxy demand resources

Demand response programs are designed to allow end use customers to contribute to energy load reduction individually or through a demand response provider. The CAISO is charged with ensuring the safe and reliable transportation of electricity on the high voltage transmission system while ensuring diverse resources have equal access to the system and markets. Pricing for proxy demand resource in the wholesale market is based on the day-ahead or real-time market locational marginal price, whichever market is applicable to the proxy demand resource's awarded bid.