Update on Demand Response Stop-Gap

Stu Bresler, vice president of Market Operations for PJM, reported the timeline of actions expected on PJM’s Demand Response Stop Gap proposal. Bresler presented the update at the Feb. 26 Markets and Reliability Committee meeting.

The proposal offers a way for demand response to continue to participate in the PJM capacity market in a manner that minimizes the risk that the auction results would later be invalidated in the event the U.S. Supreme Court declines to review the Electric Power Supply Association v. FERC jurisdictional issue.

PJM continues to work with stakeholders to clarify the mechanics of how its proposal would work in anticipation of May’s base residual auction for capacity. However, procedurally, PJM is still in a wait and see mode. Bresler noted that PJM will respond to comments and protests in March.

PJM is waiting for the FERC’s ruling on its stop-gap proposal, expected by early April.