DEFINITION:
ERCOT Demand Response: Changes in electric usage by end-use customers from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized.

ROGRAM:
Large customs willing to interrupt electric demand loads during an electric grid emergency in exchange for payment as a participant in the DR program. The customers capable of deploying agreed to demand loads within a specific ramp rates will be tested for qualification for the program. ERCOT implements Demand Response interruptions during peak loading of the grid in order to avoid a grid blackout in the area.

The image below is an example of a peak event occurring and the Demand Response utilized to keep a black out from affecting the area.