Lawerence Berkley National Labs released a report on market and policy barriers for Demand Response providing ancillary services. LBNL did not directly study a balancing authority in the Northwest. However, the report looks at a balancing authority in Colorado that is not part of an organized market. The market and policy barriers in this balancing authority have parallels to the barriers that DR faces in the Northwest. The appendices are two tables that identify barriers and actions that can be taken to alleviate these barriers. These tables could be a useful input into a study more focused on the Northwest.
The report and a companion presentation can be accessed on the LBNL website at http://emp.lbl.gov/publications/market-and-policy-barriers-demand-response-providing-ancillary-services-us-markets.