Abstract
This paper develops a state-queueing model to analyze the price response of aggregated loads consisting of thermostatically controlled appliances (TCAs). Assuming a perfectly diversified load before the price response, we show that TCA setpoint changes in response to the market price will result in a redistribution of TCAs in on/off states and therefore change the probabilities for a unit to reside in each state. A randomly distributed load can be partially synchronized and the aggregated diversity lost. The loss of the load diversity can then create unexpected dynamics in the aggregated load profile. Raising issues such as restoring load diversity and damping the peak loads are also addressed in this paper.
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