The U.S. Supreme Court announced on May 4 that it would review the case that challenged the Federal Energy Regulatory Commission jurisdiction over demand response and potentially, the way it could participate in wholesale electricity markets.
PJM looks forward to the resolution of this issue through the court.
PJM plans to include demand response in its upcoming annual capacity auction, consistent with existing rules as those rules may be enhanced through the PJM Capacity Performance filing.
The case originated with the Electric Power Supply Association’s challenge of FERC’s regulatory authority to set compensation for demand response in the wholesale energy market based on FERC Order 745.
In May 2014, the U.S. Court of Appeals for the District of Columbia Circuit effectively overturned FERC Order 745, which required demand response to be paid the full locational marginal price in organized wholesale energy markets. The EPSA case could impact demand response participation in the capacity market, also.