The inclusion of variable energy resources in RTO/ISO-managed wholesale power market operations is now growing rapidly, along with more active demand-side participation. This chapter considers possible ways in which swing contracts could facilitate the harnessing of flexible dependable net-load balancing services from grid-edge resources in a manner consistent with system efficiency and reliability objectives. It proposes a scalable framework for an integrated transmission and distribution system that permits independent distribution system operators (IDSOs) to function as linkage entities at T–D system interfaces. To illustrate the capabilities of the Five-Step TES Design in more concrete terms, the chapter focuses on a special case in which each GER is a household with a smart (price-sensitive) heating, ventilation, and air conditioning system and a mix of conventional appliances. It considers how an IDSO, operating at a T–D interface, could use the Five-Step TES Design to create additional revenue streams for GERs.