To amend the Federal Power Act to clarify the authority of the Federal Energy Regulatory Commission to prescribe just, reasonable, and not unduly discriminatory or preferential terms, conditions, and compensation applicable to wholesale demand response resource participation in organized wholesale energy, capacity, and ancillary service markets.

“(4) Treatment of wholesale demand response resources

“(A) Definitions—In this paragraph:

“(i) Demand response—The term demand response means a reduction in the consumption of electric energy by customers from their expected consumption in response to an increase in the price of electric energy or to incentive payments designed to induce lower consumption of electric energy.

“(ii) Demand response resource—The term demand response resource means a resource capable of providing demand response.

“(B) Authority—The Commission may prescribe just, reasonable, and not unduly discriminatory or preferential terms, conditions, and compensation applicable to wholesale demand response resource participation in organized wholesale energy, capacity, and ancillary service markets.”