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ARTICLE · 01 JUNE 2023

FERC Approves Enforcement's Settlements With Two Demand Response Providers

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On 22 May 2023, the Federal Energy Regulatory Commission (FERC) issued two orders approving stipulation and consent agreements that resolve enforcement investigations by FERC's Office of Enforcement...

United StatesEnergy and Natural Resources
Kimberly B. Frank
Kimberly B. Frank
Maria Faconti
Maria Faconti
Theodore Kornobis
Theodore Kornobis

On 22 May 2023, the Federal Energy Regulatory Commission (FERC) issued two orders approving stipulation and consent agreements that resolve enforcement investigations by FERC's Office of Enforcement (FERC Enforcement) of two demand response providers, Leapfrog Power, Inc. (Leapfrog) and OhmConnect, Inc. (OhmConnect), regarding their participation in the California Independent System Operator (CAISO) market.1FERC Enforcement's focus in both cases concerned whether the companies violated a provision of the CAISO tariff requiring market participants to have a reasonable expectation that they could fulfill the bids they submitted.

Background

Demand response providers contract with end-use customers who agree, when requested, to reduce the amount of electric power they would otherwise typically consume. In California, demand response providers aggregate demand response pursuant to a Demand Response Auction Mechanism (DRAM) pilot program administered by the California

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