PJM added the capability of accepting demand reduction bids in the Regulation Market in 2006. Regulation service corrects for short-term changes in electricity use that might affect the stability of the power system. It helps match generation and load and adjusts generation output to maintain the desired frequency.

Curtailment Service Providers (CSPs) that bid demand reductions into the Regulation Market must meet all the requirements of regulation, including the real-time telemetry requirement. Current reliability council rules limit demand resources to 25 percent of the regulation requirement in the ReliabilityFirst Corporation region.

There are mandatory training requirements for CSPs that desire to bid demand reductions in this market.