Dive Brief:
- Grid operator PJM has asked Federal Energy Regulatory Commission to quickly approve a series of "stop-gap" rules which will allow the regional grid operator to continue offering demand response programs until the court battle over FERC Order 745 has played out.
- PJM has proposed a set of rules that would allow demand response to continue, while FirstEnergy has filed a lawsuit which could end demand response participation in both the power and capacity markets. PJM officials say they expect a decision on the stop-gap measures from FERC by year's end or shortly thereafter, according to E&E publishing.
- FERC has until Dec. 16 to decide whether it will appeal Order 745 decisions to the U.S. Supreme Court. In May, the U.S. Court of Appeals for the District of Columbia Circuit determined FERC overstepped in developing a demand response market which valued consumption reductions on par with generation.
Dive Insight:
PJM has filed a response to FirstEnergy's complaint, which attacked the participation of demand response in capacity markets. The grid operator seeks to continue demand response programs and asked FERC to authorized its plans "to serve at least as a 'stop gap measure,' perhaps to be effective only until such time as the commission and industry stakeholders have had an opportunity, once jurisdictional questions are finally resolved, to consider and develop generic and more considered options for demand-response participation in organized wholesale electricity markets."
FirstEnergy's complaint has made waves. E&E Publishing reports the demand response battle led to a record number of participants in a PJM conference call earlier this month; FirstEnergy has almost 18,000 MW of generation in the PJM market.
