Demand Response - Compensation for load curtailment availability

Demand Response is a set of programs that allow large commercial and industrial customers to help stabilize the Texas electricity grid by voluntarily agreeing to curtail electric load before a rolling blackout event occurs. In return, ERCOT (Electric Reliability Council of Texas) compensates participants in a way that often times amounts to a return of 5% - 25% of a customer's total electricity costs.

ERCOT has the responsiblity to keep the Texas grid stable, and to that Demand Response resources are deployed as needed in the following order:
  • Contact local media, request public curtailment
  • Deploy LaaR Demand Response resources
  • Deploy EILS Demand Response resources
  • Rolling blackouts

In ERCOT, Eisenbach Consulting, LLC offers two turnkey Demand Response services — LaaR and EILS. LaaR stands for "Load acting as a Resource" and EILS stands for "Emergency Interruptible Load Service".

LaaR — Load acting as a Resource


LaaR is used rarely — 13 times in 6 1/2 years since it's inception in 2002. LaaR is the second preventative measure established to reduce the frequency and duration of rolling blackouts in within ERCOT territory. LaaR has it's advantages and disadvantages when compared to EILS.

Advantages of LaaR over EILS in Texas
  • ERCOT pays LaaR participants approximately 100% more than EILS participants (based on historicals).
  • LaaR participants are able to selectively participate on a daily basis.
  • Long history of deployments provide a level of expectation for participants.
  • ERCOT does not perform annual tests for LaaR participants.
  • LaaR payments are made monthly.

Disadvantages of LaaR in Texas
  • LaaR must be "bid in" in 1MegaWatt (average demand) increments (1MegaWatt minimum).
  • ERCOT gives no notice to participants and automatic curtailment is required.
  • Load Acting as a Resource (LaaR) is used more frequently than EILS.
  • There is a more limited capacity for LaaR participation (1450MW total, with approximately 200MW capacity left)


EILS — Emergency Interruptible Load Service



EILS is relatively new, and therefore does not have a reliable frequency rate, but is assumed to be less often than LaaR since it is deployed as step 3 and only after a LaaR deployment has failed to solve the grid problem.

Advantages of EILS over LaaR in Texas
  • Participants are given a 10 minute notice prior to curtailment.
  • EILS participants are not required to automate curtailment.
  • EILS is used less often than LaaR.
  • EILS has a large and growing capacity for participation. It is unlikely that this program will "fill up" anytime soon.
  • EILS open to any size customer with an IDR meter. 500KW average demand is recommended.

Disadvantages of EILS in Texas
  • ERCOT performs an annual test (one guaranteed curtailment per year) on each EILS participant.
  • The Emergency Interruptible Load Service (EILS) is a relatively new program, and therefore does not have a history of outages.
  • Participants who opt not to curtail when asked are likely to be banned from participation in the future.
  • EILS is a 4 month commitment, as opposed to LaaR being a daily commitment.
  • EILS payments are made at the end of a 4 month program cycle.

Numerous benefits to participating in LaaR and EILS exist. First and foremost, participants are handsomely rewarded for their availability to curtail. ERCOT is essentially buying an insurance policy against grid failure from participants. They pay a premium to the participants, but the policy may not mature during the policy period. EILS has three 4 month program periods, LaaR can be opted into on a daily basis. Participating in EILS and LaaR allows C&I customers to benefit financially from a grid failure, instead of just enduring it.

Eisenbach Consulting, LLC has industry leading payment arrangements. We are able to arrange for any up front engineering and installation costs to be offset by early compensation resulting in a zero out of pocket installation of any recommended hardware. EILS and LaaR participants enjoy a completely "turn-key" experience and industry leading compensation.

No obligation first steps:
  • Usage analysis
  • Compensation evaluation
  • Site Survey
  • Job Quote / Payout

Post contract:
  • Equipment Installation
  • ERCOT Registration
  • Testing
  • Qualification
  • Daily Scheduling
  • Telemetry Support
  • Revenue and Allocations

For more information:

Please give us a call to talk directly with an energy consultant: 1-800-977-4020

If you prefer email, please contact us through our contact form.

To speed the process:


Please feel free to complete our Letter of Authorization and fax to 1-800-977-4020 so that we may request your usage data from your Transmission and Distribution Utility.
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