PLMA releases demand response design principles paper

JUPITER, Fla., Nov. 1, 2002 — The Peak Load Management Alliance (PLMA) announced the publication of their new policy paper entitled, “Demand Response: Design Principles for Creating Customer and Market Value”.

The release of this paper is particularly timely since industry comments on the FERC Notice of Proposed Rulemaking (NOPR) on Standard Market Design are currently being solicited by FERC. This latest publication of PLMA’s represents the combined thinking of industry experts on demand response.

The complete 50 page paper (including an extensive bibliography) can be found on the PLMA website at There is no charge to download the paper.

This information paper summarizes design principles for gaining customer participation, and creating customer and market value for demand response resources (DRR). The paper suggests design principles that help build value propositions for customers and equitably support efficient electric markets.

These principles arise from the extensive experience of professionals in demand response and builds on the first policy paper of the Peak Load Management Alliance, “Demand Response: Principles for Regulatory Guidance.”

The following sixteen design criteria are identified and discussed in the paper:

1. Communicate with customers on design and implementation
2. Keep program design understandable
3. Provide program choices
4. Accommodate small participants
5. Enable customer decisions
6. Leverage customer infrastructure
7. Address environmental priorities
8. Reduce high costs of customer equipment
9. Develop fair and practical baseline estimation procedures
10. Use advanced notification procedures
11. Compensate for full value
12. Reflect location and reliability values
13. Balance penalty provisions
14. Settle payments in a timely manner
15. Deploy multiple marketing strategies
16. Develop long-term capabilities and relationships.

For further information about the paper or for PLMA membership information, contact Elliot Boardman at 561/575-1788 or

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