Summer-Only Demand Response Proposal Heads to MRC

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On Thursday, the Summer-Only Demand Response Senior Task Force reviewed the results of the recent task force vote. The results of the vote and a first read of the PJM proposal will be presented at the Sept. 27 Markets & Reliability Committee meeting.

The PJM proposal was the only one of three proposals that received more than 50 percent of the vote and will be the only proposal to move to the MRC.

PJM’s focus was on improving the accuracy of the long-term zonal and RTO load forecast. While the proposal’s design components are tailored to respond to participant needs, they still must satisfy PJM’s planning needs and be both predictable and measurable.

Background

After the Reliability Pricing Model transitioned from procuring annual and sub-annual products to procuring a single, annual product (Capacity Performance), summer-only demand response resources were required to aggregate with other resources to create annual capability.

Auction results indicated that participation in the RPM as a supply resource is still the preferred viable method for curtailment service providers and customers to realize value for demand response resources. The issue charge for the task force was to find a method to better value summer-only demand response resources through the load forecasting process, as an alternative to supply-side participation in the capacity market.