In this paper we describe an ongoing project which develops an automated residential Demand Response (DR) system that attempts to manage residential loads in accordance with DR signals. In this early stage of the project, we propose an approach for identifying individual appliance consumption from the aggregate load and discuss the effectiveness of load disaggregation techniques when total load data also includes appliances that are unmonitored even during the training phase. We show that simple discriminative methods can directly predict the appliance states (e.g. on, off, standby) and the predicted state can be used to calculate energy consumed by the appliances. We also show that these methods perform substantially better than the generative models of energy consumption that are commonly used. We evaluated the proposed approach using publicly available REDD data set, and our experimental evaluation demonstrates the improvement in accuracy. © 2012 ACM.