In a recent order, the Federal Energy Regulatory Commission (FERC) said that by paying the wrong price for the ancillary service known as frequency “regulation,” system operators have encouraged too many gas-fired turbines and other conventional fossil power plants to supply regulation service.

As more natural gas is used for power generation, more volatility can be expected in gas markets. Demand response might provide a tool for managing that volatility, but is it technically feasible? And will gas customers accept it?