FERC Approves, Delays PJM Filing On Demand Response
October 03, 2013
The Federal Energy Regulatory Commission wants to get more information on a proposal from PJM that would require demand response that is bid into the capacity market to come with firmer information. FERC accepted and suspended PJM’s filing for five months to become effective either with another order on March 2, 2014, or on the outcome of a technical conference, whichever happens first. Bidders offering DR into the capacity market will have to show PJM that the resources are actually available. Additionally, DR providers would have to provide a timeline, including development milestones, that satisfies PJM that the resources will be available in the delivery year at least 15 business days before a capacity auction. FERC could not approve the filing yet, saying that could be unjust and unreasonable given the resource development cycle used by DR firms and the overall reliability objectives of the capacity market. Those issues will be debated at the technical conference, which will happen within 60 days of the order.