Regulatory changes. Some states, including California, have enacted decoupling regulations that allow utilities to recover revenues lost due to DSM programs. Utilities and regulators have also explored opportunities to use demand response as another source of generation through “negawatts,” or the ability to reduce load upon request. Some states and regional grid operators, such as the New England ISO’s Ancillary Services Market Project, allow utilities to bid demand response capacity into the wholesale market as if it were generation. This encourages utilities to pursue DSM