Dive Brief:
- PJM will file a staff proposal with the Federal Energy Regulatory Commission (FERC) to place a hard cap on the amount of summer demand response that can clear the regional transmission organization’s three-year forward capacity auction.
- CEO Terry Boston said the correction would retain reliability and integrity of the reliability pricing model so that prices are differentiated among demand response products according to their relative reliability contribution.
- PJM’s independent market monitor has recommended eliminating the limited and extended summer demand response products.
Dive Insight:
PJM is looking for FERC to resolve an issue it has been unable to do on its own. Its independent market monitor has recommended changes in the treatment of demand response in the capacity market. Stakeholders agree changes must be made to identify ways that grid operators can use demand response more efficiently to resolve local constraints. Stakeholders and PJM staff developed various proposals, but none has attracted the necessary two-thirds consensus of PJM’s Members Committee.
