Dive Brief:
- PJM will be able to call on demand response resources throughout the year in under a proposal approved by the Federal Energy Regulatory Commission (FERC).
- Previously, PJM could only call on demand response resources in the summer. During last month's cold spells, PJM was unable to require that demand response resources were used.
- Stakeholders had mixed views of the PJM proposal, but it should lead to higher capacity prices, which is positive for generators.
Dive Insight:
The FERC decision resolves a controversial issue for PJM. It gives PJM greater flexibility in maintaining grid reliability in its footprint.
"Given the challenges of the extreme cold weather, PJM is pleased and grateful that the commission has agreed to our proposals to strengthen demand response as a reliable capacity resource," said Terry Boston, PJM president and CEO.
