Abstract: FERC Order 2222 requires ISOs to develop market mechanisms that will enable aggregators of distributed resources to participate in the electricity wholesale market. In this work we describe the construction of a supply function for an aggregator’s virtual power plant (VPP) based on a portfolio of curtailable devices, categorized into priority tranches, that are controlled by the aggregator through edge technology behind the meter (BMT). Only the nameplate capacity of the curtailed devices are known to the aggregator while the energy yield from curtailment is uncertain. However, the supply function of the VPP offered by the aggregator into the wholesale market must specify deliverable energy quantity as function of wholesale price, like any other generator. We employ a revenue management methodology to construct a supply function with controlled delivery risk, based on priority tranches of the curtailed devices and offline estimates of the energy yield probability distributions. This work is part of an ARPA E project aimed at implementing a VPP based on aggregated demand curtailments at PJM.