Publication | Open Access
Dividends with Demand Response
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2003
Year
Facility PlanningEngineeringFacility ManagerProgram EvaluationOperations ResearchAsset PricingLogisticsFacility ManagementQuantitative ManagementPayout PolicyDemand ManagementBid CurveDesignDemand ForecastingSupply Chain ManagementMarketingFinanceFinancial EconomicsBusinessDemand ResponseFacility Managers
To assist facility managers in assessing whether and to what extent they should participate in demand response programs offered by ISOs, we introduce a systematic process by which a curtailment supply curve can be developed that integrates costs and other program provisions and features. This curtailment supply curve functions as bid curve, which allows the facility manager to incrementally offer load to the market under terms and conditions acceptable to the customer. We applied this load curtailment assessment process to a stylized example of an office building, using programs offered by NYISO to provide detail and realism.